This was done intentionally. Allowing server configurations to be applied to individual gamertags could enable server owners to offer unfair advantages for profit and capitalize off said systems. That’s why all server configuration files for console are set up to apply universally, rather than being customizable for individual gamertags.

In T183911#2657516, @Neue-Germania wrote:

I have to agree. Keep all backpacks the same, it gives them great value and a lot of custom community servers who rely on Alice Bags being 90 slots to spawn in uniforms or building supplies would be impacted.

Hoping this doesn't get overlooked. This is a serious issue that affects both the gameplay experience and overall immersion.

This is still an issue after the latest hotfix.

Is there any update on this? This is a significant, game-breaking issue that heavily impacts player immersion. It would be great to know if there are any plans or timelines for a fix.

This is not the issue. The object will not spawn as ruined; it will only spawn as badly damaged unless explicitly forced with a min/max value of 1.0. It seems there might be some confusion with object despawn, but this is a completely separate issue not related to the CLE.

Thanks for the clarification, Geez. It appears I might have misdiagnosed the issue, attributing it to the launch parameter when, in fact, it could actually be related to inadequate hardware on the host machine.

Would allow for so many exciting opportunities, would love to see this.

This issue has not yet been fixed as of stable update 1.22 (1.23.156797).
Any updates to this matter?

Bump. Any updates on this?