After updating NX8.5.3 to MP08, MP09 in ISV material is not removed in multi-axis operations.
You can see this problem in any OOTB simulation samples.
are you saying it works in MP7 and no longer with MP8 or MP9? If so please get in contact with GTAC. We are not aware of any code changes.
With mp07 everything works fine.
As @SpaceTom says, you need to log a call with GTAC and get your test case submitted, so that development can look at it. Our deadline for 8.5.3 MP10 is almost here, so please do not delay.