Overrides not preserved after library updates

Some of our designers are facing issues when accepting library updates in their files, where their overrides won’t be preserved after they accept an update. Our components use a lot of nested instances from another library.

Weird thing is that once I try to accept the update myself on their file, overrides seem to be preserved. We are pretty sure these updates aren’t breaking changes so not sure what to do here.

I was able to find a thread around an override bug that took place in 2020 when Figma released a quick action called “fix instances overrides” but I can’t seem to find this in Figma anymore.

Any ideas?