So I completed a few missions yesterday, before the 1.2.2 update, and got the money to finally upgrade the R&D building to allow resource transfer between docked ships. This is my 3rd play through and I have done numerous setups like this in 1.1. I know resource transfer works when I am able to transfer mono propellant between the Mk1 Command Pods and between the 2 FL-T800 fuel tanks, as shown in the first two pictures. Then I am trying to transfer from a FL-T800 on the bigger ship to the FL-T400 on the smaller ship, does not work.
I have taken 3 screenshots of this, but don't know how to upload images into the forum.