Direct delivery intercompany sales orders in Cu12

I'd like to ask the group if you have found this to be true.
We are upgrading from CU8 to CU12 and it appears that something has changed with automatically creating direct delivery intercompany sales orders.
IN CU8 we specified an approved vendor on the released product, and a default site in default order settings and a default warehouse for sales orders in site specific order settings. When we created a sales order with the auto create interco sales order and direct delivery flag on in the header of the sales order, the line item site and warehouse would be populated from the default warehouse site and warehouse in the order settings data on the released product.
Now in Cu12, the site and warehouse are not automatically populating on the sales order line when it is marked for direct delivery and in fact it is not possibly to populate the values even manually. It appears that if we populate the default direct delivery warehouse on the released product, then that site/warehouse will populate automatically on the sales order line at time of order entry.

My question is: is it now required to populate the direct delivery warehouse on the released product if we want to use the auto create intercompany order + direct delivery?
thank you,