In some situations, using nested cells is a necessity. When placing nested cells using Annotation Scale, things become a bit more complicated.

When creating a nested cell, all of the cells must be annotative. You will also need to ensure that all of the nested cells have the same origin point as the parent cell. If the origins are different, you will get undesirable scaling results.

Orphan cells (cells created using the Group tool) cannot be made annotative.

If your nested cell contains any orphan cells, it will not be placed annotatively regardless of which annotation settings are configured.

To correct this, you will need to drop these cells and create separate annotative cells for these orphan cells, making sure to define the cell origin correctly.