QGroundControl Doesn't Display Failsafe Flight Mode

I’m not quite sure if this is a QGC or firmware issue. The condition is present whether connected via USB cable or radio telemetry. Please advise if I’m doing something wrong.

After setting up the aircraft, I test the failsafe by turning off the Tx. From all indications via the LEDs on the Rx and FC, it’s in failsafe and should be in Return flight mode but the QGC still displays the last flight mode it was in. In essence it doesn’t confirmation if it went into failsafe or not.

If I turn on the FC either via battery or USB without turning on the transmitter first, it displays Manual first then changes to Return. I turn the Tx on and it changes to the flight mode selected on the Tx. But then, when I turn off the Tx again, it does popup the banner message “Manual Control Lost” but the display stays on that last flight mode.

Setup as follows:

QGC v3.3.2
mRo Pixhawk with v1.7.3 Stable firmware
RC Loss Failsafe Trigger Failsafe Action: Return to Land
RC Loss Timeout: 0.5 seconds
Taranis Q X7 with OpenTx 2.2.1
FrSky X6R in D16 mode via SBUS

I’d appreciate any suggestion for resolution.

QGC just shows the flight mode the vehicle is sending to it.

@LorenzMeier @dagar Care to comment?