The minecraft:transformation component sometimes treats a block's schematic as a unit cube when it shouldn't. This causes the component to incorrectly error, saying that the given geometry is outside the safe zone for custom blocks.

This is most easily seen with a slab centered on the block space. Scaling this geometry twice is supposed to extend the model to be a full block. This correctly occurs when the minecraft:geometry component is in root components with no bone visibility entries. However, when a minecraft:geometry component would be given in any permutation (no matter the condition) or even when a root-level geometry component would provide bone visibility entries, a content log error is issued, and the block is visually replaced with an update block.

Attached is Transformed Schematic.mcworld, demonstrating both working and bugged examples. On the blue concrete is the working example:

The bugged example is on the red concrete:

Both block definitions are also directly attached:

working.json
bugged.json