The issue is when i up or downscale the sprite at its centre, sprite X and Y are not updated, although its drawn correctly on the screen . You can test this issue with the following code:
Rectangle rect=new Rectangle(CAMERA_WIDTH/2,CAMERA_HEIGHT/2,100,100,this.getVertexBufferObjectManager());
rect.setScaleCenter(rect.getWidth()/2, rect.getHeight()/2);
rect.setScale(1.5f);
The new X and Y should match the scene coordinates, but this doesnot happen
The X and Y postion of a sprite should NEVER update in response to a scale change. The x and y are measured from the transform center of the sprite, essentially its local 0,0. So no scale multiplier will ever change that transform root to anything other than 0,0.
You may see the object appear to move left or right in response to a scale up or scale down, but that is because the bounding box of the sprite is enlarging or shrinking. But the point from which that transform is changing does not change, so X and Y stay the same.