GAME option of GenerateProjectFiles.bat does NOT work properly

protected void AddProjectsForAllModules( List<FileReference> AllGames, Dictionary<FileReference, ProjectFile> ProgramProjects, List<ProjectFile> ModProjects, List<FileReference> AllModuleFiles, bool bGatherThirdPartySource )protected void AddProjectsForAllModules( List<FileReference> AllGames, Dictionary<FileReference, ProjectFile> ProgramProjects, List<ProjectFile> ModProjects, List<FileReference> AllModuleFiles, bool bGatherThirdPartySource ) 
{
   HashSet<ProjectFile> ProjectsWithPlugins = new HashSet<ProjectFile>(); 
   foreach( FileReference CurModuleFile in AllModuleFiles )
   {
...

// check for engine, or platform extension engine folders
 if( !bIncludeEngineSource ) 
{ 
   if (CurModuleFile.IsUnderDirectory(UnrealBuildTool.EngineDirectory)) 
   { 
      // We were asked to exclude engine modules from the generated projects      
      WantProjectFileForModule = false;
      break;
...