This happens in 8.6 as well and requires the subVI to have a picture control and to have its FP closed.
One workaround is to use the first call? primitive and call the Open FP method (with the state set to hidden) when the VI starts running.
Thank you for the feedback.
I tried the vi's you have attached here and it updated the first time I ran the Caller.vi.
I must be doing something different from you.
The issue has been filed in a Corrective Action Report (CAR ID#126219).
I couldn't see the behavior initially, but now I do!!
Sorry for the delayed response.
Thank you for your feedback.