We would ideally like to cut 3D Studio Max out of the process completely.
The current workaround seems to be export to STEP and then use Unreal with Datasmith to convert to FBX, but that’s also very cumbersome.
But we also discovered that not only isn’t blocks/instances preserves, rotation and location isn’t preserved either, as all origins will be placed at zero.
EDIT: Just found out about this which I hope will serve as a workaround as well.