I noticed that when trying to have an element and a background that wraps around it (for example when creating a responsive button), it stops working if the element is complex (already an autolayout, or a group or a frame).

Here is my very simple layout to reproduce this:

When I select them both and group them or create an autolayout using a shortcut, the resulting autolayout places the BG as an element inside and not as a background and the nested frame is positioned absolutely.

This is extremely tedious and I believe this is a bug because it worked in the past.

If the element is atomic, like a text layer, the behavior is as expected: