After Effects Set Matte not Working

[Courtney31289613fz8m]

This only happens when I use an image, but why does the set matte not work properly? I've seen people say it has to do with scaling or making a pre comp and whatnot, but there has to be another solution/fix to this. Why is this an issue and how do I fix it? I have tried all methods.

 

[Rick Gerard]

You have a nested comp (pre-comp) as the source. If there are transform controls, try turning collapse transformations turned on or off. If masks or effects are applied, you also have to turn on those properties. Without seeing all the modified properties and knowing what you are trying to achieve, it's hard to give you a specific workflow.