Copy document library including DocumentSet does not work properly

[MTrummer]

I am cloning a document library containg a DocumentSet.

#Parameters
$SiteURL = "https://company.sharepoint.com/sites/Contracts"
$SourceLibraryName = "ABC"
$DestinationLibraryName = "XYZ"
  
Try {
    #Connect to the Site
    Connect-PnPOnline -URL $SiteURL -Interactive
  
    #Get the Source library
    $SourceLibrary =  Get-PnPList -Identity $SourceLibraryName -Includes RootFolder
  
    #Get Timestamp
    $Timestamp = (Get-Date).tostring("yyyyMMdd-HHmmss")
    $TemplateName = $SourceLibrary.Title+"_"+$Timestamp

    #Step 1: Save the  Source Library as a template
    $SourceLibrary.SaveAsTemplate($TemplateName, $TemplateName, [string]::Empty, $False);
    Invoke-PnPQuery

    #Get the Library Template created
    $Ctx = Get-PnPContext
    $Web = Get-PnPWeb
    $RootWeb = $Ctx.Site.RootWeb
    $ListTemplates = $Ctx.Site.GetCustomListTemplates($RootWeb)
    $Ctx.Load($RootWeb)
    $Ctx.Load($ListTemplates)
    Invoke-PnPQuery
    $ListTemplate = $ListTemplates | Where {$_.Name -eq $TemplateName}
   
    #Step 2:  Create the destination library from the source library template
    If(!(Get-PnPList -Identity $DestinationLibraryName))
    {
        #Create the destination library
        $ListCreation = New-Object Microsoft.SharePoint.Client.ListCreationInformation
        $ListCreation.Title = $DestinationLibraryName
        $ListCreation.ListTemplate = $ListTemplate
        $DestinationList = $Web.Lists.Add($ListCreation)
        Invoke-PnPQuery
        Write-host "New Library '$DestinationLibraryName' created successfully!" -f Green
    }
    Else
    {
        Write-host "Library '$DestinationLibraryName' already exists!" -f Yellow
    }
    #Remove the List Template
    $TemplatePath = $Web.ServerRelativeUrl+"/_catalogs/lt/"+$ListTemplate.InternalName
    $TemplateFile = Get-PnPFile -Url $TemplatePath
    $TemplateFile.DeleteObject()
    Invoke-PnPQuery
    #Remove-PnPFile -ServerRelativeUrl $TemplatePath -Recycle -Force
  
    #Step 3: Copy content from Source to the destination library
    $DestinationLibrary = Get-PnPList $DestinationLibraryName -Includes RootFolder

    #Calculate Site Relative URL of the Folder
    If($Web.ServerRelativeURL -eq "/")
    {
        $FolderSiteRelativeUrl = $SourceLibrary.RootFolder.ServerRelativeUrl
    }
    Else
    {     
        $FolderSiteRelativeUrl = $SourceLibrary.RootFolder.ServerRelativeUrl.Replace($Web.ServerRelativeURL,[string]::Empty)
    }

    #Get All Content from Source Library's Root Folder
    $RootFolderItems = Get-PnPFolderItem -FolderSiteRelativeUrl $FolderSiteRelativeUrl | Where {($_.Name -ne "Forms") -and (-Not($_.Name.StartsWith("_")))}
         
    #Copy Items to the Destination
    $RootFolderItems | ForEach-Object {
        $DestinationURL = $DestinationLibrary.RootFolder.ServerRelativeUrl
        Copy-PnPFile -SourceUrl $_.ServerRelativeUrl -TargetUrl $DestinationURL -Force -OverwriteIfAlreadyExists
        Write-host "`tCopied '$($_.ServerRelativeUrl)'" -f Green   
    }   
}
Catch {
    write-host -f Red "Error:" $_.Exception.Message
}

Basically it works and the new library contains all content types including the DocumentSet.

But the created DocumentSets in the library do not work - simply the link when cklicking the DocumentSet (folder) is wrong.

Not working link in the cloned library

company.sharepoint.com/sites/Contracts/Playground%20Vertrge/Forms/Vertragsmappe/docsethomepage.aspx?ID=3&FolderCTID=0x0120D520002509A316E8F1C644984D64608C7434D2006212E82A3A4C4849B2F334504E38B459&List=4e9ca871-9ca6-47cb-9c9b-3f26b9b08850&RootFolder=%2Fsites%2FVertragsmanagement%2FPlayground%20Vertrge%2FFab4Minds%20Vertrag&Recsrc=%2Fsites%2FVertragsmanagement%2FPlayground%20Vertrge%2FFab4Minds%20Vertrag

Working link in the original library:

company.sharepoint.com/sites/Contracts/IT%20Vertrge/Forms/AllItems.aspx?id=%2Fsites%2FVertragsmanagement%2FIT%20Vertrge%2FFab4Minds%20Vertrag

When I remove the DocumentSet content type from the cloned library and re-add it it works as expected.

Any idea?

We are still on PNP version 1.12.0