Animation Rigging pivoted target is not respected when parented to the character GameObject itself

Reproduction steps:
1. Open project “Animation-Rigging-Experiment.zip”
2. Open scene “Sample”
3. Enter Play Mode
4. Observe the character on the right (“Example 2 [Pivot Parented to Animator]\SWAT Guy” GameObject in the Hierarchy) through Game view

Expected result: the character updates its rig to look toward the “Target” GameObject (as the “Example 1 [Pivot not Parented]\SWAT Guy” GameObject on the left)
Actual result: the character doesn't update its rig to look toward the “Target” GameObject

Reproducible with: 2021.3.29f1, 2022.3.7f1, 2023.1.8f1, 2023.2.0b4

Reproducible on: macOS Ventura 13.2.1 (Intel), Windows 11 (by the reporter)

Notes:

• Reproducible in Standalone Player
• The target for the character on the right is parented under a pivot transform and the pivot transform is parented under the character GameObject