No -- the files were not being reported as copied and not physically copied either. And I definitely do not have the "Do not copy..." option checked. The really odd thing, however, is that all of the folders get created (even the folders I did not request). Just none of the files were copied.
I have downloaded the refreshed beta and tried my test again. Things are now a bit different, but still very broken. The files in root folders matching “/B*/*” are now being copied as I requested, but all other non “B” folders are still being created as empty folders. Also, I have 2 excluded folders which are now being included in the copy operation.
I will put together a test script to demonstrate these problems and post it tomorrow morning.
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