Local components don't propagate changes to their instances in public components?

I have the following scenario:

There’s a checkbox component, and checkbox with text. Checkbox is never used on its own, only with label or other elements, so it makes no sense for me to have it as public cluttering the library. The Checkbox has its properties exposed in Checkbox with text.

The problem is that changes made to any non-default variations of the local Checkbox component, such as changing its checked state to say orange, will not propagate to already placed instances of “Checkbox with text” in designs, they will display the “Checked” variant as it was when that specific instance of “Checkout with text” was created.

I would understand (although not necessarily agree) the logic that local means no public updates, but that doesn’t seem to be the case either. If I place a new instance of “Checkbox with text” and change checkbox state to checked, I would see the updated orange (although it would also stop receiving updates to the checked state from there on).

Is this a bug or am I missing something in my set-up?