Models inside a character behave oddly

So, I found this weird bug while experimenting with :GetModelCFrame() but it doesn’t seem exclusively linked to :GetModelCFrame(). Basically, if you put a model in a character with parts in it, once you select that model in studio (or use :GetModelCFrame() on it) the model will no longer be considered where the part/parts inside it is, but will be located where you last selected it.

Here’s a picture and repro to try and explain what I mean. Repro (13.0 KB)

The repro shows :GetModelCFrame() being inaccurate, but the problem isn’t just that. You could disable that loop and select the model to have the same effect. What’s really interesting though is that if you update the properties of the part inside the model inside the character, it updates that models position. Is this just a problem with network ownership or the code or something?