Hi @loremipsumdolor, Thank you for reaching out and providing some details about your issue. I genuinely appreciate it!

I’m trying to understand but a bit unclear about how this instance resizing isn’t right.
If the text layer in that auto layout frame isn’t resizing as you expect, you might want to check the text property on the right sidebar. Resizing property will show you how the text overflows or wraps with different resizing behaviors.
Here’s a helpful guide: Explore text properties - Resizing

Additionally, the resizing section of our auto layout Help center article might provide more clarity: Explore auto layout properties- Resizing

If you’re still experiencing issues after checking out these resources, would you mind sharing a recording of what’s happening?
Please make sure to include the entire window, visible Properties, Layers Panel, and the expanded layers for both the main component and the instance.

This will help our community offer you more tailored advice.

Please don’t hesitate to let us know if I’ve missed anything. if any other community members have suggestions, feel free to chime in!

Thanks,

What are you trying to resize? You can only resize the instance itself, not the items within the instance, e.g. text. The size of the content within the instance can only be affected by constraints and auto layout. The instance itself should be resizable manually without issues as long as it’s not nested in another instance.