Material Instance Can't Update Material Parameters Defined in a Material Function Within a Material Layer

When you edit the parameters of a material function that is within a material layer from the material instance, the material instance does not update.

Found in 4.20 CL# 4369336, 4.21 CL# 4541578, and 4.22 CL# 4573698

1. Open the Editor
2. Enable "Support Material Layers" in project settings
3. Create a material, material function, and material layer setup like the image provided

Results:
The thumbnail will update with the changes however the material preview will stay red. This is the case even when applied to a mesh.

Expected:
The material would update with the changes made to the parameter.

Current workaround:
You can get this to work by changing the parameter in the Material Function to a Vector3 input, then using a vector parameter in the material layer. (See attached images)