Block instance display transparency is affecting other instance

In the scene, I have 2 blocks. One is a big block consisting of 3 nested blocks, and another is a separate part of this bigger block. If I set any display transparency to the separate block, its instance in the big block disappears. It’s best shown in the video.

Simplified example attached.
block dissapear.3dm (62.4 KB)

To give it more context I noticed that it’s the last created block instance display settings that overpowers other instances.

Hi Jakub -
Thanks for that file.
I’ve put this issue on the list as RH-75335 Display: Block transparency issue