No Response Vassals can't upgrade?

[Otherwhere]

I think this is by design, but it is a problem. I took over Graygarden as my first Vassal. I went off to build up my Outpost and a few other settlements (looking to either enslave or take them as vassals), and when I went back to Graygarden I tried to change the flag and saw a message: (I don't recall the exact words) Because all this settlement's resources are being sent to your Outpost, it cannot upgrade.
Since I am starting each trial/test run from level 1 and, and have set my handful of settlement to randomly be built at either level 0 or level 1 (to avoid overloading my Bone), this creates a huge problem because I need those vassals to continue to upgrade in order to support my growing army.
Side issue: I cannot change the flag as it keeps giving me the error message about the settlement not being able to upgrade.
I have also used the option in the holotype to control vassals, btw.

 

[Axonum]

Go to your Sim Settlements holotape options, under the Conqueror submenu, turn Control Vassals to on. that will allow you to upgrade the cities of vassals.

 

[Agi_]

There is a starting option that asks if cities will upgrade; think that, like i did in my first playthrough, you set it to no that's the default, cities wont upgrade.
I had a few not raider controlled, with leader, city plan, scraps at 100% and good happiness but none upgraded