Could you add the ability to include the update icon thingy next to those nested instances which have updates available but might not have been update when the initial component update was applied, and maybe add an extra option in the instance update menu to also enable the ability to update the instance and nested instance as a short cut, or at least indicate to the user that there are nested instance updates available that haven’t been update.
It makes sense that when you do an update to an instance you don’t want to automatically update those nested instances that the user may have already configured their properties, but it would still be very useful from an in application feedback context that the user is still being informed and communicated when there is a potential nested instance update that can be made but hasn’t been executed by the application.
Like it could be as straight forward as have an update icon next the nested instance name on the side panel.