I hope this gets fixed. Actually, there is a similar issue if you use a similarly designed nested button component with a base component, but your icons are not designed as different components but variants of a single Icon component. In that case, the same happens, switching the icon and then switching the state of the button also reverts, meaning the override of the nested instance is only applied to that specific variant, and changing any other property the modification is lost. It was also the case before the recent figma update.