Upto version 2.5.x SM worked as expected.

Now version 3 does not work in acceptable way.

Create new user in OU to which home directory policy is assigned.
That home directory policy DOES have Template folder specified, as well as
default rights RWCEMF

That does get copied while the provisioning happen, but ALL subfolders
copied from the Template have inherited rights ONLY as RW

That means that the user can not write to any of the subfolders

That is total madness!

Also applied a policy to all staff & all the dates for the folder creation
date got reset to 2007
These folders were definitely created in 2009/2010

Both Linux server as well as NetWare server have correct time!