SQL Check Constraint with User Defined Function - sql

Question

I am troubleshooting an issue seen in our sql server database recently.
Table 1 has a calculated bit column based off of a user defined function which checks if a record exists in another table and evaluates to 0 if not.
Table 2 is the table searched by the function for Table 1. Table 2 also has a check constraint using a function to see if the bit field in Table 1 is set to 1.
This seems like a circular dependency. The problem is that when inserting a batch of records into Table 2, the constraint fails. Inserting these same records 1 by 1 allows all of the inserts to go through. I can't for the life of me figure out why batch inserts cause it to fail. Any help is appreciated.
CREATE TABLE [dbo].[tPecosPriceCheckStoreSubcategory](
[PecosPriceCheckID] [int] NOT NULL,
[StoreID] [int] NOT NULL,
[SubcategoryID] [int] NOT NULL,
[UndirectedExpectedScans] [int] NULL,
[PriceMin] [decimal](8, 2) NULL,
[PriceMax] [decimal](8, 2) NULL,
[PastPriceVariancePercent] [decimal](5, 2) NULL,
[ChangeDate] [datetime] NOT NULL,
[IsUndirected] [bit] NOT NULL,
[IsDirected] AS ([dbo].[fnPecosPriceCheckStoreSubcategoryIsDirected]([PecosPriceCheckID],[SubcategoryID])),
CONSTRAINT [PK_tPecosPriceCheckStoreSubcategory] PRIMARY KEY CLUSTERED
(
[PecosPriceCheckID] ASC,
[StoreID] ASC,
[SubcategoryID] ASC
)
ALTER TABLE [dbo].[tPecosPriceCheckStoreSubcategory] ADD CONSTRAINT [DF_IsUndirected] DEFAULT ((0)) FOR [IsUndirected]
GO
CREATE FUNCTION [dbo].[fnPecosPriceCheckStoreSubcategoryIsDirected]
(
#PecosPriceCheckID int,
#SubcategoryID int
)
RETURNS bit
AS
BEGIN
declare #isDirected bit
set #isDirected = 0
if (exists (select 1 from tPecosDirectedPriceCheckItem where PecosPriceCheckID = #PecosPriceCheckID and SubcategoryID = #SubcategoryID ))
begin
set #isDirected = 1
end
return #isDirected
END
CREATE TABLE [dbo].[tPecosDirectedPriceCheckItem](
[ID] [int] IDENTITY(1,1) NOT NULL,
[PecosPriceCheckID] [int] NOT NULL,
[PecosItemID] [int] NOT NULL,
[ItemSortOrder] [int] NOT NULL,
[SubcategoryID] [int] NOT NULL,
[ChangeDate] [datetime] NULL,
CONSTRAINT [PK_tPecosDirectedPriceCheckItem] PRIMARY KEY CLUSTERED
(
[ID] ASC
)
ALTER TABLE [dbo].[tPecosDirectedPriceCheckItem] WITH NOCHECK ADD CONSTRAINT [CK_tPecosDirectedPriceCheckItem_CheckPriceCheckSubcategoryDirected] CHECK (([dbo].[fnCheckDirectedItemPriceCheckSubcategory]([PecosPriceCheckID],[SubcategoryID])=(0)))
GO
ALTER TABLE [dbo].[tPecosDirectedPriceCheckItem] CHECK CONSTRAINT [CK_tPecosDirectedPriceCheckItem_CheckPriceCheckSubcategoryDirected]
GO
CREATE FUNCTION [dbo].[fnCheckDirectedItemPriceCheckSubcategory]
(
#PriceCheckID INT,
#SubcategoryID INT
)
RETURNS BIT
AS
BEGIN
DECLARE #isViolation BIT
SET #isViolation =
CASE WHEN EXISTS (SELECT * FROM tPecosPriceCheckStoreSubcategory WHERE SubcategoryID = #SubcategoryID AND PecosPriceCheckID = #PriceCheckID AND IsDirected = 1)
THEN
0
ELSE
1
END
RETURN #isViolation
END