The Golden Dragon not penetrating bodies

Platform: Xbox One S

Location: Dubai

So I’m trying to complete the Conserving Ammunition challenge completed and The Golden Dragon indicates it penetrates bodies but it only kills one target even when I line them up

You better post this in a Bug Report Thread so the IOI employees definitely see this issue.
They might not monitor the whole forum, but they see all the messages in that thread.

Can you shoot two NPCs with one bullet at close range? If so, your range is perhaps the problem.