Hey Hornet! A new twist on the theme. I noticed a dial in the Settings Tab that I hadn't seen earlier. So I started over from scratch, to see if I may have slipped up. Ok so it seems I DID slip up, there isn't a "bug" after all.
With the Use External binary morph targets ticked and UNticked, the results are the same. Double clicking on the pz2 does load the morph, though it does not always turn the dial on loading. It does this even with an incorrect path, so Poser 11.2 is actually finding and loading the .pmd file. It isn't correcting the path name in the pz2 loading it though. But if it loads the file every time, no fussing about it, nothing is wrong. And THAT is what I saw when I got in from my hospital visit this morning.
PP 11.2 is running now, LaFemme Pro 1.1 is loaded, and so are three different character sets. Unfortunately, the poser devs and vendors don't always put the dial in the expected location in the Settings Tab. So I went through the whole thing for Head and then Body and found all three character dials in both head and body. Things are a little trickier with Poser authors results than DAZ solidly laid out required formats, but the dials do exist and do function. Ta daaaa! No worries after all!

My 66th Birthday PC Build (July 1, 2020) :  named BadMoonRYZEN!, W10Pro x64, Octal Core RYZEN7 X3700 4.05 GHz, 64GB DDR4 RAM, GeForce RTX 3060 - 12GB GDDR6, PP2014, PP 11, P12, PS-CS4 Extended & Vue 2024.

McG.