Probably this one is a known feature limitation and there is a workaround as shown below:
Could you try this out? If the issue persists, would you be able to share the file link with access to support-share@figma.com? It won’t affect your billing. I hope I can investigate it further.
Thank you. I added auto layout to the collapsed and expanded components inside the main component and set the resizing as you mentioned and it fixed the issue.
