Ungrouping components also ungroups sub-components included
If you ungroup a component that incorporates other components, the other components are also ungrouped.
Eg: Component is a contact form, with text, line shapes and pre-existing components for text input. If I ungroup/release this, the pre-exisiting components are also released. They stay in a group, but aren't a component anymore.
I'd expect the ungrouping to only be 'one-level' deep.
Hopefully that makes sense. I'm running Xd 18.104.22.168
Thanks for the extra information – this happens with linked components that have nested components and you unlink the outer component. I believe there are historical reasons for this behavior, but it’s reasonable to say it is also unexpected behavior and so I have logged a bug internally for it.
As a workaround, you could first convert the linked component in the Assets panel to a local component, and then ungroup it. That will provide the desired behavior when you ungroup the outer component.
That is what I'd expect and want to happen, yes. But it's ungrouping/unlinking every nested component within.
I've attached a video which shows this happening. It applied to all the nested components. You can see this in the layers panel.