Troubleshooting: I'm having problems with conflict resolution while splitting a complex edge

Consider the following scenario:

Two versions (V1 and V2) are created from the same state of SDE.Default.
V1 and V2 each contain a complex edge with ObjectID 101.
User 1 connects to V1 and splits the ObjectID 101 edge. This results in two smaller (102 and 103), and the original edge (101) is deleted.
User 1 reconciles and posts to SDE.Default.
User User 2 connects to V2 and updates an attribute of the same feature with ObjectID 101.
User 2 reconciles V2 against SDE.Default and receives conflicts on the features with ObjectID 101.
User 2 selects "Replace with Edit Version" (which is the ObjectID 101 feature with the updated attribute from the current version V2) and then posts V2 to SDE.Default.
If SDE.Default is opened all three edges, 101, 102, and 103 are present.

In step 7, when edit version was chosen, all edits linked with the conflicting version should have been rolled back. Edges 102 and 103 were created because of a split of 101, which caused 101 to be deleted. However, in the final database all three are present. This can cause a number of problems not only in terms of having incorrect data but also network connectivity.

As we understand it, this scenario is known, and Esri considers it a Works As Designed.