How to reproduce:
1. Open the attached “IN-111065” project
2. Open the “SampleScene”
3. In the Game View, enable Stats
4. Enter Play mode
5. Observe the Transform positions in the Console window
6. Observe the result

Expected result: The fired objects appear in the position and rotation as shown in the Console window
Actual result: The fired objects position and rotation resets to 0,0,0

Reproducible with: 2022.1.0a6, 2022.3.65f1, 6000.0.56f1, 6000.2.1f1, 6000.3.0a5
Not reproducible with: 2021.3.55f1, 2022.1.0a5

Reproduced on: Windows 11
Not reproduced on: No other environment tested

Workaround: Using FixedUpdate() instead of Update()

Notes:
- Also reproducible in Player
- Low framerate is not strictly necessary to reproduce the issue- it’s likely that a FixedUpdate is called in between Updates
- Once all “Bullet” GameObjects are active, the issue no longer reproduces