FORGET THE PE AND LEARN THE REST OF 3DGS FIRST!!!!!
If you dont' know that you have to use a skycube in every level for any game, even for a board game, then you have no buisness tackling the PE. This is not a bug; this is one of THE most basic requirements to making a game in 3DGS.

Advice:
a) Read the ENTIRE Manual....three times at least.
b) Do the WeekLong introduction that is part of the manual. Had you done this, on day one you would have found this requirement and you would have never had this problem, even with your origianl code.
c) As you are doing now, add the PE lastly. ONce you have your level and models in place, then and only then try to engage the PE.

Just so you know, you've hit on two real pet peeves of mine:

1) Having alot of people put alot of time and thought into your problem, looking over your code, testing your code, etc only to find out it was a TRIVIAL error on your part that should never happen if you had read the included 3DGS literature.
2) Confusing your own ignorance of the engine for a BUG in the engine....this one really irks me when I spot it.

JRAV, no harm, no foul and I wish you the best of luck.
We are still and always here to help you but the nature of this thread tells me you ARE NOT ready for the PE and should take a few steps back and learn the rest of 3DGS first.