Does Role based entitlements work with nested groups?

Senario: Entitlement is granted for any user in ParentGroupA

ChildGroupA and ChildGroupB are nested in ParentGroupA.

In the policy builder the test shows that it should work, but the
entitlement driver logs don't show that they are a member of
ParentGroupA only ChildGroupA

Is this a bug or non-supported feature?

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