Block will not update. Certain I'm in error

I recently found the Simply rhino video explaining a lot of block options I was not using. specifically liked blocks. My spaceship practice model was 1gb. Using linked blocks I’ve brought it down to 9mb. And over the course of reworking it with linked blocks, updates have been working fine. But I have a problem now. Pic 1 shows a section model with a small edit in a “mechanical” part block. That section is then linked to the whole. However, the mechanical part does not up date. I’m certain the problem is my error but don’t know where to look. I think it has something to do with the Block manager message, but I can’t find how to solve it.

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Hello - select that block in the list and click ‘Update’ - does that do anything?

-Pascal

Nope. I get the message that “one block updated successfully” but nothing changes. Refresh does nothing either.

Hm. And just as a test, what happens if you save, close, close Rhino, and then re-open the file? Any change?

-Pascal

That did it. Odd. I watched other blocks update automatically.

Hmm-Hmm - and, can you repeat the problem?

-Pascal

I’ll have to see tomorrow.

Yep. Repeated the problem if it is that. Are linked blocks supposed to work trough levels of links?
My mechanical piece is linked to the fuselage section. The fuselage section is linked to the whole. It seems the link update only works through one level. As a test, I edited a different block (the track section) and it also did not update.