I think I have narrowed down the issue. It involves the MEP license.
1. Start AC23, select New, select AC23 template file.
2. Open License Information..., it shows Available Products > ARCHICAD > Local (CodeMeter); MEP Modeler > Disabled.
3. Select Object Tool, WC 23 is the default object, choose Geometry Method: Rotated, place object, rotation on placement works.
4. Select Equipment Tool from the MEP tools, default is Hood Built-In 23, choose Geometry Method: Rotated, place object, rotation on placement does not work. (The other Geometry options also do not work.)
5. Open License Information..., it shows Available Products > ARCHICAD > Local (CodeMeter); MEP Modeler > Local (CodeMeter).
So when the MEP License gets activated, the Rotated geometry method stops working for MEP connected elements (via the Subtype used for the GDL object). I tested this by opening the WC 23, changing its Subtype from Flow Equipment to Model Element, saving it as a new library part and placing it. The object with the altered Subtype works correctly. I tested in AC22, same behavior.
So this looks like it is the license that causes the problem. If the original poster is using a trial license, maybe the same thing is going on. Users without a MEP License may never see this behavior.