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The API Help description for those methods doesn't say that it should return 'False' in case of rebuild error. Most likely it just returns the indication that the method was executed correctly (similar to HRESULT in c++). The rebuild errors are not the fail of the rebuild method - this is the fail of features. I agree with you that it will be better if this method returns the rebuild error indication somehow, but it is how it is and it doesn't look like API BUG. You may submit an enhancement request.
In the meantime you can check the rebuild errors using the Feature::GetErrorCode2 method.
Regards, Artem Taturevych | Snr. Developer | IC3D ANZ
IC3DSteel – New Steel Solution for SolidWorks
translationXpert – SolidWorks files language translator
My problem was while rebuilding in an assembly, I solved my problem by using
boolstatus = swModelDocExt.GetWhatsWrong(vFeatures, vErrorCodes, vWarnings) method after EditRebuild3.
Thank you very much.