(reposting from (comment)[https://github.com//pull/7387#issuecomment-54363122])
JSFiddle example here – in the second test, the nested transclude is ignored.

It seems to lose the transcluded content when the ng-transclude is applied to the same element as the nested directive within the outer directive's template.

It works if the ng-transclude is applied to a wrapper element inside the nested directive (but then you're left with an irritating wrapper element).