Scale-Fail, or Me-Fail?

That’s a fun problem you got there! I didn’t realize what’s going on at first. When you are scaling the component — its instances get resized. And when scaling the instance — it gets resized. So you are double resizing this instance: firstly by resizing the component, secondly by resizing the instance itself. This of course can be considered a bug (that can be reported) since the visual result is not what you are expecting. But I’d say it’s working “technically correct”.

P.S. I find it a bit weird that you are addressing the question to me — I’m not the only person on this forum haha.