ClientNetworkTransform does not seem to sync if semi-far away from source

Imagine situation:

Client connects to host, and his 'player prefab' is spawned automatically via networkmanager which is default behaviour.

Now this player prefab instance is correctly placed for client, who is owner of the object. He can run around the map on his own screen, but for host, he is still at 0,0,0, just rotating around, and not moving.
Now, when I grab this player object on host via transform tool, and move him close enough ~~ 50 meters to the actual position he is on his own screen, then the player instance snaps to the correct place and can no longer be moved on host (which is how it should work in the first place).

What's going on?

 

It's lovely to see such an amazing support from all the Unity devs. You're truly outstanding, never change please.

 

Thanks for nothing Unity.

Interpolation is broken, turning off interpolation in networktransform fixes the problem. I hope this gets fixed.