Copy Model drops references - Update 7

I have upgraded to OBD Update 7 and I see all kind of weird new issues...but this one is a strange one.

I make copies of models within the same file all the time...but now in update 7, the new model content is there but all its references from the source model are not? The attachments are dropped.

This is an annoying problem that I have never seen before and it only started after I started using Update 7?