Shotgrid/Flow Auto Sync Bug

Hey all! Got a potential bug to report, regarding the SG/Flow Ayon Auto Sync vs the more manual Shotgrid Sync
To clarify, by Ayon Auto Sync I’m referring to enabling this tickbox in SG Browser

Screenshot2_anno

And by Shotgrid Sync I’m referring to the Shotgrid>Ayon button on this page in the Ayon browser

Alright, onto the bug
When Ayon Auto Sync is off and a version is uploaded to SG, using the Shotgrid Sync triggers a project sync exactly as expected, nothing odd is added to the hierarchy.

However when Ayon Auto Sync is on, and a version is uploaded, it is synced across in a strange manner and placed outside the hierarchy, like this

AutoSync

Before upload

After upload, TST_Ayon_Sync_v001, the name of the version, has been added at the top level

I’m assuming that this is a bug as the behaviour is different between autosync vs shotgrid sync, which I had imagined to be identical processes
This is unfortunate as we want to use AutoSync to handle updating fields etc., but enabling it clutters up the launcher quite fast

This seems to be unaffected by whether or not a version has a linked asset/task, so I figure it’s not an issue in the Project Tracking settings

Is anyone able to replicate this?