[NetCode] Any reason why a system updating a non-ghost PhysicsVelocity on the client does not work?

I am starting to think that there is something broken with NetCode + PhysicsVelocity

I think the issue above is related to the issue below
DOTS Multiplayer discussion page-6#post-6665689

For some reason NetCode kind of loses it with updating PhysicsVelocity. @timjohansson