Win10 gtx 980
Blender 2.78 recent build (25/04/17) 0f2d0ff
Short description of error
When setting up an IK chain with stretch, in world unit scale 0.01, and large armature scale, applying the scale transform gives incorrect IK stretch. Please see .blend file attached.
It's not that I like working with 0.01 unit scale and big bones, but unfortunately this operation is needed to export to the Unreal Engine.
Exact steps for others to reproduce the error
Open the blend file, hit Ctrl-A > Scale. When unchecking Stretch from the IK constraint, it works.
Thanks for your work.