The attached pictures show that it all works properly in the 3.99y Beta28 version.
You didn't provide details on your setup but if you try it exactly as the pictures show then you might be able to narrow it down to your communication with Arduino.
In my example, both controls (BasicLabel and PilotLight) point to the same Modbus address on the MODRSsim2 simulator used in conjunction with com0com program (paired ports COM1-COM11, where COM1 was used in the ModbusRTU AHMI driver and COM11 was used in the MODRSsim2 simulator).