Thank you @StephaneLacrampe and @JoshWedgwood.
Apologies for the late response. I had to think this through for some time 
@JoshWedgwood , your suggestion works great!! Your advice has expanded my knowledge about the use and purpose of the editing modes, which I have been wondering about for some time, thank you 
However, @StephaneLacrampe is correct. I was missing something more fundemental about the modelling process and the philosophy behind āNestingā.
I was trying to use Nesting as a tool to logically āgroupā Physical Node Components (PNCs) together into assemblies/sub-assemblies at the Physical Architecture [PA] level without them necessarily being hierarchically nested in the Project Explorer, effectively getting myself confused with the modelling Philosphy vs. what I was trying to achieve. It took me some time to realize that this was, in fact, the wrong level to try and do this in the first place. The right level to fully introduce assembly/sub-assembly organisation is, off couse, at the EPBS Architecture level, which I was successful in achieving in the end. I ended up leaving the PA in a āflatā non-hierarchical state, i.e. with all PNCs at the same level (i.e. no nesting). Then, for purposes of order and neatness, I used folders and subfolders (i.e. Physical Component Pkgās) to group the various parts into their assembly/sub-assembly groups. This made things easier to keep track of when transitioning to EPBS and creating a nested hierarchy at EPBS level.
That said, it still leaves me with questions about what the actual meaning and purpose of hierarchical Nesting at the PA level is? What principle or notion is (usually) supposed to be conveyed with nesting at this level? If one is trying to, for example, convey that a smaller part is connected to another larger part, then showing the small part as nested inside the larger one (with or without physical link between them inside the larger one) is neither here nor there, since the same can be achieved by depicting them side-by side with a mechanical connection (i.e. physical link) between them.
Thus far I have found that the only component which somewhat makes sense to depict in a nested way is that of a electronic Printed Circuit Board (PCB). For a PCB the most significant electronic components (eg. Processors, Controllers, FPGA etc.) are then modeled as nested inside the PNC (i.e. physical PCB), which conveys the notion that these electronic components are assembled onto the PCB, i.e. ācontainedā by the PCB⦠which can also be somewhat confusing. Then, using physical ports on the boundary and physical links to the internal PNCs (i.e. electronic components), the notion of the external physical ports/interfaces of the PCB are depicted this way with some success.
What else?
Nesting Physical Node Components, therefore, is still somewhat of a mystery to me that I am hoping to clarify.
Your thoughts and suggestions are welcome.
Thanks again.
Estian.