System Information
Operating system: Windows-10-10.0.19041-SP0 64 Bits
Graphics card: NVIDIA GeForce GTX 1050 Ti/PCIe/SSE2 NVIDIA Corporation 4.5.0 NVIDIA 512.95

Blender Version
Broken: version: 3.2.0, branch: master, commit date: 2022-06-08 10:22, hash: rBe05e1e369187
Also tested : During beta ( same problem occurred )
Worked: Never

Short description of error
Appending a collection will get the same result as linking it, importing with an empty parented to it without being able to edit the mesh or any property of it. Making the instance real loses all its parent system.

Exact steps for others to reproduce the error
Append ( both reuse data or not get the same error ) any collection from any asset library
The appended collection should now be imported as an instance instead of a local collection.

Notes :

• Using File -> Append works as intended.
• Appending a model using the asset library, then pressing CTRL + Z will turn the model into a local collection as expected ( pressing CTRL + Z one more time will actually delete the model. )