Hey Deepak, since this is your first post you may not have permission to post screenshots, but having a few more details about your design system would help! Could you tell me,

1. You said “light variant component”—are you using a variant property for managing light and dark modes? The properties segment of the design panel would look something like this when you have the main component selected:
   
   


2. Are you using variables for color theming? One thought I had was that if “Light” is your default mode, but you’re dropping instances into a frame that has “Dark” mode applied, then the instance will inherit that mode and instantly switch to Dark. This would explain the behavior you described.