Incorrect datasource location being displaying in Experience Editor while adding new component

Question

I am having an issue regarding datasource location while adding a component in experience editor.

The component datasource location is set to a particular datasource folder item(/sitecore/content/Site Data/Generic Content Items) in Sitecore.

The issue persists for every page item in Sitecore having some child items. When I'm adding this component in that page in Experience Editor, it displays current page as datasource location instead of Generic Content Item folder to select the datasource content item for the component.

While if I add the same component in any standalone page containing no child items, it displays correct datasource location(/sitecore/content/Site Data/Generic Content Items) to select the datasource content item in experience editor.

Is it a default behavior of the Sitecore? I'm using Sitecore version 9.2 and revision 002893

Is there a way to get rid of this problem and always display correct datasource location in Experience Editor as specified in component(rendering) item itself regardless of whether page having any child items or not?

Please find the below video link for the same reference: https://www.screencast.com/t/kD6TQJLLYUUr

Below are my Sitecore instance details:

Sitecore version : 9.2.0 
Revision Number : 002893

Please let me know if anything else is required.

Answer 1

It is a known issue and Sitecore provided a hotfix package for the same - https://support.sitecore.com/kb?id=kb_article_view&sysparm_article=KB1000608

Be aware that the hotfixes were built for specific Sitecore XP versions and must not be installed on other Sitecore XP versions or in combination with other hotfixes. In case any other hotfixes have already been installed on a certain Sitecore XP instance, send a request for a compatibility check to Sitecore Support.