Description
When overriding updateMatrix on a Three.js Object3D (or Sprite), you must set this.matrixWorldNeedsUpdate = true. Without this, the object's world matrix will not be recalculated when its local transform changes, causing the sprite to appear frozen in place, incorrectly scaled, or improperly rotated in the scene.
Severity: high
File: packages/core/src/3d/SpriteUtils.ts
Expected Behavior
The code should handle this case properly to avoid unexpected errors or degraded quality.