Geometry in sublevel created with "Load Level Instance" ignores level transform. Other objects, such as Static meshes are affected by the transform. This issue is not a regression.
Versions tested: This issue occurs in all versions
4.16.3 - CL: 3561208
4.17.2 - CL: 3586342
4.18.P2 - CL: 3660543
Head over to the existingAnswerHub thread and let us know what's up.