Why are we forced to wear default armor when playing custom games locally?

Ever since the Season 2 update hit, my friends and I haven’t been able to use our cosmetics in local custom games. Instead, we’re just forced to wear Mark VII armor. I have no idea whether this is a bug or a deliberate decision on 343i’s part, but it certainly wasn’t an issue in Season 1. In any case, it’s highly bothersome, especially considering how much of a grind it is to unlock things in this game. We invested a lot of time and effort to earn these cosmetics, and we shouldn’t have to play on servers and deal with latency to enjoy said cosmetics. Whatever change was made, please revert it.

Sounds like a bug