In the first toggle, the interaction only triggers off of the toggle being hovered, not when the text is hovered. When triggered, the animations do change to the correct component, but smart animate doesn’t work. It’s instant.
Smart animate does work with the regular toggle.
This isn’t a bug, you haven’t properly wired the interactions. You drew the interaction from just the toggle, so it’s not going to work when you hover over the words because you haven’t told it to. Make sure the label and toggle are within one frame making up a variant of your component. Repeat until you have 4 variants of this toggle with label component. It should look like the image below. Notice that the noodles are coming from the right edge of the words, not just the right edge of the toggle like you have in your image. This indicates that the action will be triggered from the entire component, not just the nested toggle component.
If set up correctly, it works exactly as intended
Hey! Try again today!
Yesterday my Figma updated and now my nested and overrides components are working well with auto animate - both with auto layout.
Thanks, Bruno! It looks like it’s working now. 
Not totally. Hahaha. In another file, with another complex component, I wasn’t able to animate a nested component inside this complex component 
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I couldn’t detect what was the specific update point to take advantage and try to make complex components, with nested ones, totally compatible with Smart Animate.
