Help me understand subjugation war

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Daffius

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I'm currently playing a regular empire (all dlc, no mods) and I have a neighbour (rogue servitor) with a pretty large empire. I decide I'd like to subjugate them and make them a vassal. The subjugation cassus belli is active and says if I status quo the occupied territories would split off as a new kingdom. As the rogue servitors are spread with enclaves (with points I can't reach as it's on the otherside of a closed border empire) I'm actually fine with that.

So I start the war and kill their fleet and occupy 80% of their systems (the other 20% I can't reach). I then go for status quo and the territories I occupy indeed become a new empire with MY pop type as ruler. However, the new empire is independent and original Rogue servitors become my vassals.

Is that correct? Shouldn't it be the other way round? I mean with this outcome I have 0 control over the systems I occupied. The ones I can't reach on the other hand are my vassals... Is this working as intended? Can someone shed some light on the mechanic? Thanks
 
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