Instanced Static Mesh does not apply World Aligned Material correctly

If you apply a material that uses World Aligned Blend to an instanced static mesh, it will display differently than an non-instanced static mesh with identical settings. They only look identical if the scale is 1,1,1.

1. Open attached project
2. Change the scale both the instanced and non-instanced static mesh on the z axis to 2 units then compare.

RESULT
The instanced static mesh will display the material differently from the non-instanced static mesh.

EXPECTED
Both meshes appear the same as long as scale is the same