I would like to understand this:
Note that if the instanced collection was linked from an external file, the Object Data (mesh, materials, textures, transforms) will also still be linked from the original collection. However, the various object’s parent-child relationships do not carry over.
What’s the reason why this happens?
This seems rather un-useful and problematic, unless there is another way of making an instanced collection real respecting the hierarchies, if it’s not, this seems like a bad workflow for production because if you want to have an scenario linked, and then you want to locally modify it, if you make it real you will loose all the relations, so basically you are breaking it.
Not sure who to ask about this, so I’ll let @dfelinto decide who’s this question related to