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Adobe XD needs to sort out its nested component issues.
I've added an instance of a component (1) INSIDE the master of another component (2), when you overwrite and change the component inside the master component (2) it does not propagate through the application, this is a needed feature to create simple and complex design systems to keep all things consistent.
Current work arounds:
"Live with it" from another community member
Create multiple master components to nest
Use an instance and "ungroup" (causing any changes to the master not to propagate ...)
BTW, there are already many similar bug reports and feature requests over here:
https://adobexd.uservoice.com/search?filter=ideas&query=nested%20components%20edit
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Adobe XD is a couple years old now, and the amount of structural design and workflow features (and being able to combine and even nest them) is still relatively small. But I realised this is probably intentional, because XD is not aimed at production work, which would normally require lots of time-saving approaches and handy tricks to eventually speed-up any repetitive work. So it's not as complex as software like InDesign or Excel, in which you need all kinds of features to quickly and precisely build large volumes of structured content.
So i.m.h.o. Adobe XD prefers to spend their development resources more on quick and dirty approaches for all kinds of design matters, in stead of anticipating how to connect all the available nuts and bolts in a structural and reliable way. They rather leave it to users to figure out all possible workflows (and discover their flaws and bugs...)
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I thought time saving was one of Xd's main selling points. Xd doesn't need to be complicated. But the features it already has and advertises should work properly.
I was really excited when they released component states, but it has bugs, which make it unusable in some very common use cases. If you wanted a realistic 10 item menu for a website, with a hover and a "selected" state for each item, it's a nightmare. And the uservoice request for that doesn't even have a reply on the matter:
There are a bunch of filed bugs regarding current features that aren't working properly. I think it should be a priority fixing those, instead of releasing more new & unfinished features just for the sake of "more features".
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BTW, there are already many similar bug reports and feature requests over here:
https://adobexd.uservoice.com/search?filter=ideas&query=nested%20components%20edit
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I agree with you. I'm using icons as a component (with few sizes variations) and using them inside other components. I put the icon inside another master component and override its color, for example. When creating a new instance of this component (that has the icon inside of it), the icon color is reset to its own master component's color, not the overriden color from the master component it's in.