Copy with mates error - concentric 2016

There is an error or I'm missing something but copy with mates does not function correctly when a concentric mate is involved. If I try to make a copy with mates and the component has a concentric mate the component is rotated. The same thing happens even block rotation is active.

I'm using SW 2016 SP4.0. If this a bug it makes copy with mates almost unusable.

If someone has solution please help.

SolidworksAssemblies