ID 437670 - Using UV Pack on non-uniform scaled UV shells produces overlapping UV's

Problem summary
Using UV Pack on non-uniform scaled UV shells produces overlapping UV's

Customer reported version
modo.14.0v2

Customer reported platform
windows10

Steps to reproduce

1) Download and open the attached scene file.
2) Select all of the smaller UV islands and select the Pack... tool.

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3) Using the default settings select OK and notice that the islands are still overlapping.

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Expected behaviour
It should pack the UV's so they don't overlap.

Actual behaviour
Packed UVs are overlapping.

Workaround
Unknown.

Reproduced by support

This bug has been reproduced in:
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

11.1v1 - Windows 10

11.0v3 - Windows 10

10.2v4 - Windows 10

Earliest version tested

10.2v4 - This issue appears to be in all versions of the product.