It could be a feature limitation where swapping instances/changing variants on nested instances keeps the size of the initial instances/variants (instead of resizing to fit the larger expanded dropdown in this case).
There is a workaround though! To get the nested instances to resize, you can add auto layout on each variant of components.
Can you check by adding auto layout to the each state?
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.
