Multiple nested panels resize problem

There is a strange problem with panels resizing when thre are many (10-40) nested panels (TPanel) with Align=alClient.

The problem - when form with the panels is resized, not all the panels adjust their size.

The number of panels needed to see the problem vary on different computers.

Is this Delphi or Windows problem? Does anybody know a solution?

Simple demonstration of the problem - compile and run a project with following form, set the value in edit box to 20 or 30, press Refresh and then resize the form (enlarge it).

The form code is :
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unit Unit1;

interface

uses
  Windows, Messages, SysUtils, Classes, Graphics, Controls, Forms, Dialogs,
  StdCtrls, Spin, ExtCtrls;

type
  TForm1 = class(TForm)
    Panel1: TPanel;
    btnRefresh: TButton;
    se: TSpinEdit;
    procedure btnRefreshClick(Sender: TObject);
  private
    { Private declarations }
  public
    { Public declarations }
  end;

var
  Form1: TForm1;

implementation

{$R *.DFM}

procedure TForm1.btnRefreshClick(Sender: TObject);
var
  i : integer;
  NewPane,
  Pane : TPanel;
begin
  with Panel1 do for i:= 0 to ControlCount - 1 do
    Controls[i].Free;
   
  Pane:= Panel1;
  for i:= 2 to se.Value do begin
    NewPane:= TPanel.Create(Pane);
    with NewPane do begin
      Caption:= 'Nesting level = ' + IntToStr(i);
      Align:= alClient;
      BorderWidth:= 2;
      BevelWidth:= 2;
      Parent:= Pane;
    end;
    Pane:= NewPane;
  end;
end;

end.
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The .dfm is :
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object Form1: TForm1
  Left = 385
  Top = 23
  Width = 595
  Height = 380
  Caption = 'Form1'
  Color = clBtnFace
  Font.Charset = DEFAULT_CHARSET
  Font.Color = clWindowText
  Font.Height = -11
  Font.Name = 'MS Sans Serif'
  Font.Style = []
  OldCreateOrder = False
  PixelsPerInch = 96
  TextHeight = 13
  object Panel1: TPanel
    Left = 0
    Top = 0
    Width = 587
    Height = 289
    Align = alTop
    BevelWidth = 3
    BorderWidth = 2
    Caption = 'Panel1'
    TabOrder = 0
  end
  object btnRefresh: TButton
    Left = 56
    Top = 312
    Width = 75
    Height = 25
    Caption = 'Refresh'
    TabOrder = 1
    OnClick = btnRefreshClick
  end
  object se: TSpinEdit
    Left = 160
    Top = 312
    Width = 121
    Height = 22
    MaxValue = 222
    MinValue = 2
    TabOrder = 2
    Value = 20
  end
end
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