USplineComponent::FindLocationClosestToWorldLocation does not function correctly with non-uniform scale

Licensee reports incorrect results with FindLocationClosestToWorldLocation when used with non-uniformly scaled spline components.

Attached a SplineTest2 project.

There are 2 BP_SplineActors - they render the closest position on the spline to the player pawn with a red sphere.

Use the eject feature and you can see that one spline correctly renders the closest position but one does not. The one that does not work correctly has a non uniform scale in the root actor. In this example Scale [8, 1, 1].