[BM SS4] Drop Polygon Collection crash

I need to drop Polygon Collections so they can be clipped (Application elements checked).

This works if I use plain MicroStation or Bentley Map without an active Project.

When I try to drop the elements when I run my BM Workspace MicroStation will crash and hangs.

Any ideas?

A small test file is attached.

Prior to this I've exported the file and selected to remove all XFM data in the Option dialog.