Michael please try this and see if you see something wrong with the "subDiv" elaboration.
I've made with V3. It's a very simple use-case.
The red mark id where I think there's some strange "flow" but i don't know. Please check the entire model if you can.
Hope this can help :) This is the best I can do right now.
This is the 3dm file : http://take.ms/rhLTD
Ciao!
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