Layout Manager operates on frames that exist when a dashboard's startup scripts execute. Frame prototypes are never resized. Dashboard Studio Wizard calls the startup scripts when settings in Steps 4 - 8 of the wizard are applied. As a result, new frames are under the control of Layout Manager.
If a dashboard is not in Design mode, then content for a section is resized when that section is activated based on the default layout guide associated with each frame. The layout guide is hidden by default, so it does not interfere with dashboard objects.
When a Dashboard is in Design mode (for example during Step 3 - Layout in the Wizard), no Activation events are fired, and no resizing occurs.
When dashboard object creation and placement is complete, move to Step 4 - Associate in the wizard. When you click 
, Layout Manager:
Examines all dashboard frames and classifies objects as Resizable, Height Extendable, and Width Extendable based primarily on the position of the top left corner of the layout guide
Records the sizes and positions of the new objects so that they can be restored at any time by clicking
.
Objects whose default layouts are already saved are not updated. To update the default layout of every resizable shape on a section, move to the Layout Properties frame and follow the steps described in Saving Dashboard Designs as Default."