There is code in the module like this:

Location Changed handler that keeps the compatibility session PWD in sync with the parent PWD

This only applies on localhost.

$locationChangedHandler = {
[PSSession] $session = Initialize-WinSession -ComputerName $SessionComputerName -ConfigurationName $SessionConfigurationName -PassThru
if ($session.ComputerName -eq "localhost")
{
$newPath = $_.newPath
Invoke-Command -Session $session { Set-Location $using:newPath}
}
}

The problem is that the user can specify localhost, nodename, nodename.domain and these code treats them as different. It should not.
Because of this, directory tracking (the snippet above) does not work when the user specifies the hostname.