Component Instance got no auto layout from master component

So I got a master component in my published library, which has auto layout. Why auto layout is removed and not usable in an instance of that component? If I activate auto layout on that instance, it doesn’t apply it to the component. Instead it auto layouts in a new outer frame, which is not helpful.

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I was having this issue, but realized I was just getting confused by Figma UI. I realized my instances do actually have auto layout, just not the highlighted identifier. Check to see if your instances have gap options.