Created attachment 112044 [details] test case See test case.
Created attachment 112573 [details] better test case
What I see happening is that we don't recompute the preferred logical width. When we set the height to auto, we set the pref width on the child to dirty, but it's already dirty. I think it didn't get cleared on the first layout. As a result, we don't set the container's pref width dirty bit since the current node is already dirty. It's interesting to note that the bug doesn't reproduce if the width is not also set to a fixed height even though we're only setting the height to auto.