I have run into a problem with assume. I am using Worksheet mode. When I execute the following simple program I get what I expect.

I am trying to manipulate some equations of motion in block matrix form. My first attempt is with the old linalg package because I don't want the submatrices to expand until I am ready However, linalg is not working as I expected. In particular, the formation of EoM1 in the eample below does not lead the &* operator propagating into a block matrix multiplication. If there is a better way to do this with the Linear Algebra package, I would sure like to see an example. Failing that, what am I doing wrong in the linalg example?