🤔 Unity, huh, how?

🤔

Static Entities

Gameobjects marked with static flags or have StaticOptimizeEntity applied to them will override any TransformUsageFlags previously applied to the object.

Resolution

Any static flags will override TransformUsageFlags applied to the object. If StaticOptimizeEntity is applied, the hierarchy will be frozen.
Either remove these, or post-process your objects in a system to reapply their transforms.