On 7.9, hippostd:modify instruction with $name doesn't work on subnodes any more

In a use case where a folder's template below /hippo:configuration/hippo:queries/hippo:templates has subnodes (e.g. a default document to be created too), the $name instruction on these subnodes does not work on 7.9.

This used to work on 7.8 (I verified that)

See attached screen shot.

Reproduction

• Create 7.9.7 project with Essentials, install news feature
• Create new-news-folder-with-document template query (attached)
• Configure it on a content folder
• Execute it

Expected: the document node has the same name as it's parent folder
Actual: the document node is 'document', unchanged from template