SceneVariableSet: Allow propagation of variable changes through local variable

packages/scenes/src/variables/sets/SceneVariableSet.test.tsx

@@ -809,7 +809,7 @@ describe('SceneVariableList', () => {
       expect(B.state.loading).toBe(true);
     });
 
-    describe('When local value overrides parent variable changes on top level should not propagate', () => {
+    it('When local value overrides parent variable changes on top level should propagate', () => {
       const topLevelVar = new TestVariable({
         name: 'test',
         options: [],
@@ -832,10 +832,11 @@ describe('SceneVariableList', () => {
 
       activateFullSceneTree(scene);
 
+      nestedScene.doSomethingThatRequiresVariables();
       topLevelVar.changeValueTo('E');
 
-      expect(nestedScene.state.didSomethingCount).toBe(0);
-      expect(nestedScene.state.variableValueChanged).toBe(0);
+      expect(nestedScene.state.didSomethingCount).toBe(2);
+      expect(nestedScene.state.variableValueChanged).toBe(1);
     });
   });
 

packages/scenes/src/variables/sets/SceneVariableSet.ts

@@ -329,7 +329,10 @@ export class SceneVariableSet extends SceneObjectBase<SceneVariableSetState> imp
     // If we find a nested SceneVariableSet that has a variable with the same name we stop the traversal
     if (sceneObject.state.$variables && sceneObject.state.$variables !== this) {
       const localVar = sceneObject.state.$variables.getByName(variable.state.name);
-      if (localVar) {
+      // If local variable is viewed as loading when ancestor is loading we propagate a change
+      if (localVar?.isAncestorLoading) {
+        variable = localVar;
+      } else if (localVar) {
         return;
       }
     }