Hi there,
Thank you for reaching out and sharing the video. This seems to be working as expected as states override is still a popular feature request. I would request you to please submit your feedback here: https://adobexd.uservoice.com/forums/353007-adobe-xd-feature-requests/suggestions/38973007-allow-component-instance-overrides-to-be-inherited on our UserVoice page and upvote the request to add your voice.
The team is working on it so I would suggest staying tuned to the UserVoice page for updates. For now as a workaround, please change the text manually. I know it's a tedious task if you have multiple components and states.
I will make also make sure to share the feedback with the team for improvements in the future.
I am sorry for the inconvenience.
Thanks,
Harshika