ID 447431 - Instanced reference items lose their material

Problem summary
Instanced reference items lose their material

Customer reported version
14.1__14.1v1

Customer reported platform
windows10

Steps to reproduce

1) Download the attached 'MultiColorCube_Test.lxo' file.
2) Open Modo and select File > Import Reference...
3) Select the 'MultiColorCube_Test.lxo' file.

4) Right-click the MultiColorCube_Test item in the Items List and select Duplicate > Instance Hierarchy.

5) Select the Duplicate item and drag it out so you can see it, notice that the materials are lost.

Expected behaviour
The duplicated item should retain its materials.

Actual behaviour

The duplicated item loses its materials.

Workaround
Unknown. 

Reproduced by support

This bug has been reproduced in:

14.1v1 - Windows 10

14.1v1 - Windows 10

14.0v2 - Windows 10

14.0v1 - Windows 10

13.2v1 - Windows 10

13.1v1 - Windows 10

13.0v1 - Windows 10

12.2v2 - Windows 10

12.1v2 - Windows 10

12.0v1 - Windows 10

11.2v3 - Windows 10

Earliest version tested

11.2v3 - This issue appears to be in all versions of the product.