This is a similar issue to #460, and has similar effects.

The pipes are in the c:relocation_not_supported block tag. I think that it's up to create to support that. Can you clarify for which Minecraft version you opened this issue?

I tried this on All of Fabric 7, on one of the v2.2.x versions. It uses Minecraft 1.20.1

I think this is a Create issue. MI Pipes should be tagged already: https://github.com/AztechMC/Modern-Industrialization/blob/1.20.1/src/generated/resources/data/c/tags/blocks/movement_restricted.json. Not much to do on my end unfortunately.