Autolayout not hugging in expected way

I keep getting this issue when adding autolayout to two frames. Usually, I would expect the new autolayout frame to hug both elements, and depending on where the two child frames were, they would either align top-bottom or left-right. However the issue I’ve been having is that when I try to add autolayout, the autolayout frame only hugs to one of the frames. This is extremely confusing and I can’t seem to fix it. I can’t seem to get it to hug both child frames without resizing it, however this doesn’t automatically adjust to hug, it just sets it to a fixed height or width.