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Maybe a stupid question but did you change the domain association on the folder you want this acl to be active to the subdomain.
If you did not it remains linked to the default domain in which only the read/download acl applies.
One other quick check. Does it make a difference whether or not any text is entered into the Proposed Change field of the CR? That field actually is from the "hidden" WTChangeProposal object, so CR Creators must also have permission to create the CP object, or you will get a permission error if anything is entered into this field if they do not.
Patrick,
Can you share both OOTB CN and soft type CN OIRs.
Disable your current soft type CN OIR and create new OIR. Include only required AttrValue which is different from OOTB OIR value, in you case it is folder.id. If any other AttrValues (lifeCycle.id andteamTemplate.id etc)are same with OOTB OIR than don't include in your new OIR.
Thanks
Ayyappan