Bounding box not resizing when boolean instance set to false

When I turn the instance off I have to manually adjust bounding box for it to properly fit. This seems tedious and could make for issues redlining a component for devs. Is there something in auto layout to correct this on the parent component?
Screen Shot 2022-05-17 at 2.23.11 PM

Do you have the parent component set to hug contents, as opposed to fixed width? I haven’t had this happen with my own components.

I have them set to hug, should it be fixed? I am recent convert from sketch as of February so still learning the nuance of auto layout and Figma.

I just found the layer that was set to fixed. I swear I checked the nested layouts yesterday thank you!