When creating home folders (and possibly also TSHome, Profile and TSProfile folders), the "Disable inheritance" option is used by default for this folder.
The HelloID service account needs "Local administrator" rights to "Enable inheritance".
Without local administrator rights, it cannot restore the rights. You can break and remove the rights to fix this.
When using an Enterprise NAS solution for SMB Home shares, there is not always a "Local administrator" group. The HelloID service account needs root/global administrator access to the entire NAS and all shares.
From a security perspective, this is not the best solution.
Do not use "Disable inheritance" by default. Otherwise, let the customer choose to enable or disable "Inheritance" by checking a checkbox under Home -> Configuration.