Are you testing this in a live instance or in studio?
Note that this event does not work as expected in Play mode because the player is created before scripts run that connect to PlayerAdded. To handle this case, as well as cases in which the script is added into the game after a player enters, create an onPlayerAdded() function that you can call to handle a player’s entrance.
I tested it in studio. This script “workspace.Model.ModelStreamingMode = Enum.ModelStreamingMode.Persistent” has executed. the ModelStreamingMode property in server is Persistent. But it became Default on the client
Are you still able to reproduce this issue? I just tested with a simple server script doing exactly what you shared in your post and could not reproduce the issue. The client shows the correct model state.
If you can repro can you provide your repro place?