Syncing and unsyncing layers doesn't updates in the animation controller window

Repro:
1. Add a new controller,
2. In the Base Layer add state with a motion
3. Add a New Layer and add two states to it with no motions.
4. Sync the Base Layer to the new layer - the animator window is not updated the stateof the base layer is still shown for the base layer instead of two empty states as in New Layer.
5. Unsync the Base Layer - the New Layer states persist in the Animator Controller.
6. Press play - the motion from the base layer state is played, but it shows as if the empty state was playing

I managed to repro this most succesfully by building controller from scratch.