UE5.7 InterchangeGenericAssetPipeline -> MaterialPipeline are not using parent material for material creation on import, was working in UE5.6

Hi there,

It feels like a bug that the interchange generic pipeline is not using user-selected parent material for asset import, since it was working back in UE5.6 then we upgrade the engine to 5.7 and it no longer generating correct material instances on asset import. Would like to know how can I resolve this issue?

Steps to Reproduce

1. Duplicate "/Interchange/Pipelines/DefaultAssetsPipeline" into a folder,
2. Create a material add a color node and link to base color, call this material "M_Test"
3. Adjust setting of the duplicated pipeline

1. Common

1. Reimport Strategy = Preserve Editor Changes Properties
2. Use Source Name for asset = False
3. Asset Type Sub Folders
2. Common Meshes

1. Force All Mesh as Type = Static Mesh
3. Static Meshes

1. Combine Static Meshes
4. Skeletal Meshes

1. Import Skeletal Meshes = False
5. Geometry Caches

1. Import Geometry Caches = False
6. Animations

1. Import Animation = False
7. Materials

1. Import Materials = True
2. Search location = Do not search
3. Material import = Import as Material instances
4. identify duplicat materials = True
5. Parent material = M_Test
4. Drag a fbx asset into content broswer
5. Check the Material it generated its not (M_Test)

1. It uses /InterchangeAssets/Materials/FBXLegacyPhongSurfaceMaterial as parent material