Outline inside-only misses inside outlines

Hurrah for Stewart getting some dev help – so I can say:

Hello Stewart et al,

It looks like I’ll be generating some bug/wish reports over the next day or two-ish.

Here’s an outline op doing its expected thing:

The green-marked outlines step down an outward-facing interior face.

Here’s the same thing with Inside Only selected:

The red squiggle marks where there are no outlines around the outward facing interior face.

Here’s the workspace:

outline inside only.kmz (322.2 KB)

(edit: add topic tags)

yes, this appears to be a bug. thanks for the repro workspace

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Not exactly this, but another case that seems similar works in 4.2 and fails in 4.3 & later.