MaterialPropertyOverride doesn't work

[fathom gull]

Have reported it a while ago IN-27591, but seems like it's lost.
In short: Material Override using either asset or manually created IComponentData with attribute is not rendered.

ICD is indeed added by built in MaterialOverride MonoB to runtime entity

what is more curios - while SubScene is opened you can even see that Material color has changed (original color is red) to overriden. But changes are not reflected in actual SceneView/GameView

What's also noticeable - it works outside of Entities

here how authoring object looks like

and here what actually happens

(red one is same cube, but inside subscene)