When creating a hierarchy of Actors in the Outliner, the transform of the "child" actors will be reset if their Parent's IsEditorOnlyActor property is true.
The project in the EPS case is using a regular level but the problem also happens with WP. We should make sure to test the fix on both types of level.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-347835 in the post.