I noticed that in v4 beta there is a new button "SubD -> Create -> From file" that can load OBJ files.

I thought this is great because I can load an STL (converted to OBJ) and use it to reconstruct the object by snapping to the vertices of the STL.

I tried it with this object (shown in Blender):



And I got this:



That's a bit unexpected. Is this the expected outcome? Does this mean this new function cannot be used for the purpose I had in mind? What is its purpose then?