Auto Layout spacing doesn't respond to child component variant size changes when nested within a parent component

Hi community, this is my first topic.

I often use Auto Layout with components. These components have variants that change dimension upon an interaction, such as clicking on an element in order to expand it into a larger element. Generally this just works.

However, when I nest components with Auto Layout within a parent component, the Auto Layout spacing no longer responds to changed dimensions that result from the child component interactions, and the child components in the Auto Layout overlap with one another.

Is this a limitation of Figma, or is there a way to make this work? Thank you for your time!