Want to provide an update. The team has identified a fix for this. Their working on implementing and testing.
Also the reason I wasn’t able to replicate this was because of the KDS settings in the Square Dashboard. I had Grouping items disabled and when I enabled it I was able to replicate. 
Appreciate for your update! Please let me know once they have a fix on it.
A fix for this has been deployed and items with different modifiers will show separately now.
great! Do we have to upgrade the KDS version to apply this fix? If so, which version should we use?
No, version update is necessary to get this fix.
Just to confirm, you mean “No version” or “No, version”. If it’s the latter one, can you give me the version number please?
That’s correct you don’t need to change any version to get this change.