QuickLaunch navigation nodes get removed after updating lists

I have a similar quick launch navigation structure as in the picture below:

The Templates node points to a document library. It's url is {site}/Templates/Forms/AllItems.aspx.

Because I'm using the pnp provisioning engine to add and update artefacts in SharePoint Online, I have a provisioning template which adds or updates the Templates list.

<pnp:ProvisioningTemplate ID="Templates" xmlns:pnp="http://schemas.dev.office.com/PnP/2021/03/ProvisioningSchema">
	<pnp:Lists>
		<pnp:ListInstance
			Title="{resource:Library_Templates}"
			TemplateType="101"
			Url="Templates"
			EnableFolderCreation="false"
			EnableVersioning="true"
			EnableMinorVersions="false"
			MaxVersionLimit="50000"
			
			EnableAttachments="false"
			ContentTypesEnabled="true"
			RemoveExistingContentTypes="true"> 
			<pnp:ContentTypeBindings>
				<pnp:ContentTypeBinding ContentTypeID="0x01010047421319F25441D68B1E7B7AB3295A19" Default="true"/>
				<pnp:ContentTypeBinding ContentTypeID="0x010100D549991D99554EAAA3E78A78A20B2E10" Default="false"/>
				<pnp:ContentTypeBinding ContentTypeID="0x010100EA56B56D1E12482EB3C61338422E840C" Default="false"/>
				<pnp:ContentTypeBinding ContentTypeID="0x0120D520009DF7A4C82FA0454C8C365CA8F2CEF730" Default="false"/>
				<pnp:ContentTypeBinding ContentTypeID="0x0120D520000F3F1D8533A6469CBDB20D4DD43333CD" Default="false"/>
				<pnp:ContentTypeBinding ContentTypeID="0x0120D520000AA15DCEEA0848C491D84C94E96ABF39" Default="false"/>
			</pnp:ContentTypeBindings>
			<pnp:Views RemoveExistingViews="false">
				<View
					Name="All Documents"
					DefaultView="TRUE"
					MobileView="TRUE"
					MobileDefaultView="TRUE"
					Type="HTML"
					DisplayName="All Documents"
					Url="{site}/Templates/Forms/AllItems.aspx">
					<ViewFields>
						<FieldRef Name="DocIcon"/>
						<FieldRef Name="LinkFilename"/>
						<FieldRef Name="Title"/>
						<FieldRef Name="Modified"/>
						<FieldRef Name="Editor"/>
					</ViewFields>
				</View>
			</pnp:Views>
		</pnp:ListInstance>
	</pnp:Lists>
</pnp:ProvisioningTemplate>

As soon as I apply this provisioning template, my Templates navigation node will disappear.

Is there any reason why updating a list will remove the navigation node pointing to it? Is there any way to prevent that from happening? Imagine having 15 navigation nodes grouped under a navigation header all with audience targeting. These nodes will disappear as soon as I apply an update to the site and it will be time consuming to built everything back up since audience targeting is not supported in the schema.

Also posted here https://github.com/pnp/PnP-Provisioning-Schema/issues/608, but it's probably more suited in this repo.

Start by reproducing the issue in SharePoint Online by applying the shown PnP provisioning template to a site with a linked QuickLaunch node. Trace the provisioning-engine path that updates the list and navigation, then verify that applying the template preserves existing navigation nodes, including audience targeting; add regression coverage if the repository provides a suitable test entry point.