I had something similar to this before, and ended up needing to find a workaround. Autocad would only return the x,y locations of the nested blocks, as related to the 0,0 of the block they were in.
There were a couple different ways I managed to get the info we needed.
First, what I ended up doing was dataextract for the primary blocks, with rotation, scale, x,y location.
Exported that to excel, and then pull out the offset dimensions within the master block for the nested block locations, and have excel crunch the numbers (based on rotation and/or scale of the primary block, etc) to get the points for the nested blocks.
Can go more in-depth if that's something that you wanted to explore.
Second, I saved the filed as a temp (to be deleted version), and burst the primary blocks... That left all the nested now loose and extractable for insertion points.