Github user mcgilman commented on the issue:
https://github.com/apache/nifi/pull/2219
@JPercivall Thanks for taking the time to check this out. The behavior your
seeing regarding the propagation of the local modification indicator is
correct. When there is a nested version Process Group, it's state reflects on
its node on the canvas. On the parent Process Group, you can see aggregate
counts (on the bottom or it's node) to know that there are nested versioned
Process Groups in various states. Additionally, version actions on the parent
Process Group are disabled. Once the nested versioned Process Group has been
committed, then the parent Process Group become dirty and would require a
commit of the new version coordinates of the nested version Process Group.
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