ID 546887 - Edge Extend does not apply Local Offsets Inset as expected

Problem summary
Edge Extend does not apply Local Offsets Inset as expected.
 
Customer reported version
Modo 16.1v6
 
Customer reported platform
Windows 11
 
Steps to reproduce
1) Download attached file and open it in Modo.

2) Select the middle mesh and enable Edge Selection.

3) Select the edges inside of the hole on the mesh, then under the Mesh toolbar, select the Edge tab.
 
4) Enable the Extend tool, ten in its settings under Local Offsets, change Inset to 1mm.
 
5) Scroll down the settings and press the apply button to observe the results.

 
Expected behavior
Applying Extend Edge with a Local Offsets Inset should extend out as expected.

 
Actual behavior
Applying Extend Edge with a Local Offsets Inset does not extend out as expected.

 
Workaround
Unknown.
 
Reproduced by Support in:
Modo 16.1v6 - Windows 11, macOS 11.7 Big Sur
Modo 15.0v1 - Windows 11, macOS 11.7 Big Sur
 
Earliest version tested
Modo 16.0v1 - This issue appears to be in all tested versions of the product.