Make frame in instance snap around new image?

Hey!
This should be so basic but I can’t find the answer. This is our master component:
A section with width set to fill, height set to hug.
Inside there is a frame set to width fill and height set to hug.
Inside of this there is a placeholder image with width set to fill, height set to fixed.

In my instance, I want to replace the placeholder image. I copy-paste the fill layer of my new image over to the placeholder image layer in the instance, and hide the placeholder fill layer. I set the new image fill layer to “fit”.

Problem - I can’t figure out how to make the frame around the image snap to the new fill layer? It’s still huging the size of the old placeholder fill layer, even if delete it. Nothing I change in the master seems to make any difference. And when I pull the new image layer with the new fill out of the instance, it has actually changed size to be the same size as the old placeholder image layer!? It has added more transparent space around the image and made the image layer bigger.

What I want is simply to have a master component with a placeholder image that I can replace in the different instances, having the frame around it hug the new image in that particular instance.

How do I do this?