Parent component is responsive when resizing but child is not?

I am newer to figma and I have searched for an answer to this but I am not seeing an answer. I have a parent component that is responsive when i am resizing it but the child is not responsive when i try to resize it alone. Please see my screenshot:

Resizing Parent:

Figma will only let me upload one image in this post so I will put the other screenshot in a comment.

I am using fill - fill on the parent white dialogue box. But the child is somehow set to hug - hug. If I change the child to fill - fill it disconnects from the parent. I’ve remade these components about 5 times and I am not finding the issue. Any suggestions?

I’m trying this again and these are the steps I do:

  1. copy the parent - child is still responsive
  2. change what I want for the child - child is still responsive
  3. make it a component - this is where it stops being responsive

If I copy the parent, don’t make any changes and immediately make the child a component the child stops being responsive.

If I copy the parent, detach and delete the parent, and make the copy a component its responsive. Then if I make children of the new parent they are not responsive