A quick reply.
In general, an object modifier in Max is "not allowed" to use the world transformation of the object it is applied to, because it might be instanced, and there is more than one world transformation. So an object modifier is supposed to only modify the geometry in object space, i.e. without any relation with the world. The fact that Lab modifiers allow reading the world transform of the modifier object is a bit of a hack. One negative effect of the hack as you've found out is that Max doesn't send change notifications to the modifiers when the object is moved in the scene.
The proper solution should be a world-space modifier, but I have no time now to check your scene and get into details. It might not work either.
As for the LabPointDeformer - it's a "deforming modifier", i.e. similar to Bend, Taper, etc. It operates only on the points (vertices) of the incoming object, no matter its topology - it might be a mesh, a polyline or a particle system, as long as it implements the point enumeration interface of the Max SDK. That's why its input is a vector3, not a mesh or polyline.
Ivan Kolev (Software Developer, EPHERE Inc.)
E-mail: ivan.kolev at ephere dot com
Discord: ikolev