System Information
Operating system: Windows-10-10.0.22000-SP0 64 Bits
Graphics card: NVIDIA GeForce RTX 2080/PCIe/SSE2 NVIDIA Corporation 4.5.0 NVIDIA 471.68

Blender Version
Broken: version: 3.1.0 Alpha, branch: master, commit date: 2021-11-22 23:57, hash: rBd1a4e043bdb0
Worked: none

Short description of error
Nested collections in geometry nodes are treated as combined mesh!

Exact steps for others to reproduce the error
Just open the blend file and play the animation.
Say we have several objects which forms such structure:

when we pull in the "scene" collection via collection info node in geometry nodes, the objects inside "scene 1" collection will be treated as a combined geometry.

The expected behaiver in this case, cube.002 and cube.003 which have different rotation, when translate in local space, they should act like cube and cube.001.