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I got the ticket number now:  INVGEN-2946. While our expert has commented it as designed. Hope it helps to explain the issue in this thread.

 

This is the API Help description:
SketchPoint3D.ReferencedEntity Property

Parent Object: SketchPoint3D

 

Property that returns the object this entity is dependent on. When sketch entities are created by projecting model edges or intersecting the model, the resulting entities are driven by the original model entities and cannot be modified. This property returns the model entity the sketch entity is dependent on. The Reference property indicates whether the sketch entity is driven by a model entity or not. If the sketch entity is not referencing a model entity, this property will return Nothing. This property can also return nothing even when the sketch entity is referencing a model entity in the case where the model entity has been consumed by some subsequent modeling operation.