ChannelInterpretation means that the merge node will mix the stereo generator connections with two channels each, but then, since you have an explicit channelCountMode, it stacks two channels for each connection to get four channels and (since it is explicit), simply dropping the top two channels. Unfortunately, the two second channels are two channels from the second input - therefore, it loses all channels from the second connection.
In general, you donβt have to bother with channelCount interpretation materials, and it will work correctly for stereo.
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