It was intended that pointers instancers would be skipped if they were marked as invisible. However, we didn't account for the case of an instancer using the "inherits" visibility but one of its ancestors in the hierarchy being invisible. Now these instancers will also be excluded. This is done by checking for purpose and visibility earlier and halting the recursive traversal as soon as we find a prim which doesn't meet the criteria. Pull Request: https://projects.blender.org/blender/blender/pulls/139241