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Interesting, I get the same result as you, too.
As a workaround you can apply the same Blend Mode directly onto the Symbol.
well, not really a work-around as i need the effect on a shape in the button affecting the shape below it.
I'm getting around it by faking the overlay effect with gradient. it does the same thing with a mask also.
Yeah, this is an annoying architecture issue, please add your vote:
You get the same problem with groups within groups, all blend modes revert to normal. Same thing when you add a live filter to a group that contains an object with a blend mode. It's an architecture issue.
The only workaround that works sometimes for the symbol problem is to flatten the symbol contents. You can keep a hidden layer with all your objects so if you ever need to make edits they are still there, and just use a flattened copy. But that doesn't always work, of course.