DirectEntry in 3D environment

The returned node of instanceTo is referencing the same actual node. You can’t have individual different states across instances this way.
So, you have to create a dummy parent node above each instance, which is exactly what instanceUnderNode does. The returned node is the dummy parent, so you have a free slot for different states, which propagates to the individual instance.

Yes, you’ve got the idea.
Now you know that DirectGUI objects don’t work outside aspect2d.