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The only thing wrong with it is that it does exactly what it's supposed to. The AI basically always uses this when it can afford to, and since the AI loves protectorates, that means the big GPs will usually have a heavy chunk of their late-game construction flowing out to vassals.
I was hoping this would reduce the late-game building bloat from big AIs building a ton of urban buildings in every state, but it actually seems to make it worse, since tons of states that would ordinarily never rise above 30-40 construction now have enough to actually develop and do things, leading to a far greater overall number of developed states.
There's nothing the mod maker can do to fix this, building CPU bloat is a Paradox issue, and I personally consider it worth the trade.