ID 561180 - Painting textures are applied to incorrect locations

Problem summary
Painting textures are applied to incorrect locations.
 
Customer reported version
Modo 16.1v8
 
Customer reported platform
Windows 10
 
Steps to reproduce
1) Download the attached file and image and open it in Modo.
 
2) Navigate to System > Preferences... > Rendering > Final Rendering, then change Bake UV Border Size to 64.

3) Navigate to the UV Layout, then switch the Toolbar to Sculpting and Painting.

4) Select the Paint Tools tab and enable the Paintbrush.
 
5) under the Paintbrush options, change the FG color to a bright color such as red.
 
6) In the Shading Viewport, select the test painting layer, then start coloring the meshes in the 3D viewport and observe the UV Viewport.
 
Expected behavior
The Paint tools should apply color in selected locations.
 
Actual behavior
The Paint tools apply color in unselected locations.
 
Workaround
Unknown.
 
Reproduced by Support in:
Modo 16.1v8 - Windows 11, macOS 11.7 Big Sur
Modo 15.0v1 - Windows 11, macOS 11.7 Big Sur
 
Earliest version tested
Modo 15.0v1 - This issue appears to be in all tested versions of the product.