It’s not a bug. You have to use the official Temperature data type in the Data Collection if you want to be able to perform unit conversions with it. In that sample that you are working from, I made up a new data type called “Adaptive Comfort” so that it would look nice in the Monthly Chart legend. But, because it’s not an official Temperature data type, trying to pass the data collection through the LB To IP component is not going to change it at all.
Here is the workflow you need if you want to perform unit conversions: