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Hey All, apologies for the delayed reply!
I flagged this to the team, and they confirmed that this is currently expected behavior. The team decided to hide instance names on the canvas because:
- Instances are usually in higher volume, so we didn’t want to show too many non-design elements on the canvas
- Since instances can also be nested inside other instances, we didn’t want to show that many names but also not differentiate between top level and nested instances
- We don’t show names for regular layers, so it made sense that instances be treated similarly to regular layers rather than components
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