For cuttable category nested families, it is important to set the family Shared under Family Category and Parameters > Family Parameters > Shared if you need the cut plane to display as expected.
For example, you have a generic model family nested in another generic model family. The host family spans multiple levels, but the nested family should only appear on the first level where it is placed.
If the nested family is not set to Shared, it will appear on each view the host family is cut in the project:
If the nested family is set to Shared, it will only appear on a level where the cut plane of the view intersects the family:
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