Instance Materials are not Created When Importing an FBX

Instance Materials are not Created When Importing an FBX. 

Found in 4.22 CL# 7053642, 4.23 CL# 8386587, 4.24 CL# 9551884, 4.25 CL# 9615021

1. Open the Editor
2. Drag and drop the attached FBX into the content browser and import all
3. Create a new folder and drag the same FBX again into that folder
4. When importing set the Import method for materials to "Create new instanced materials" with the previously imported material as the parent.

Result:

The material will be imported but will not be a instance of the parent

Expected:
An instance would be created.