You guys just nearly gave me a heart attack- we use this system for starmon a ton. After some testing though, it looks like it's working in multiplayer. I ran the command to phase the thing out for player 2, which would make the actor go invisible for him only, but I could still see it. When I ran the command for myself, it phased in/out properly. So unless that the trick only works for player 1, it looks like it's working.
Hopefully the error is something you're doing, because this is a really powerful tool, and I hope more people get to use it :)
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