Hooks for altering views modes lists are called at wrong place

As per current dev, drupal_alter() is called for media_wysiwyg_allowed_view_modes and media_wysiwyg_wysiwyg_alAlowed_view_modes in media_wysiwyg_get_file_view_mode_options() on media_wysiwyg.module. But $view_modes available is just one dimensional array of key label pairs, where hook_media_wysiwyg_allowed_view_modes_alter() and hook_media_wysiwyg_wysiwyg_allowed_view_modes_alter() are supposed to recieve multi dimensional array of view mode details.

In my case, it is making problems in function panopoly_images_media_wysiwyg_wysiwyg_allowed_view_modes_alter() of panopoly_images module:

/**
 * Implements hook_media_wysiwyg_wysiwyg_allowed_view_modes_alter().
 */
function panopoly_images_media_wysiwyg_wysiwyg_allowed_view_modes_alter(&$options, $context) {
  if ($context->type == 'image') {
    // Relabel some options
    $labels = array(
      'default' => t('Original Size'),
      'teaser' => t('Quarter Size'),
      'preview' => t('Thumbnail'),
    );
    foreach ($labels as $name => $label) {
      if (isset($options[$name])) {
        $options[$name]['label'] = $label;
      }
    }
  }
}

In above function it expected $options as multi dimensional array and trying to modify label property of view mode item.