This is a dynamic component, and due to how the dynamic component extension was designed, it doesn’t support texture positioning very well. When you change the parameters the materials will be stretched. Usually people only use solid colors dor dynamic components because of this limitation.
You can embed a “scaler” swatch in the DC when it is at its original scale, (context menu, scale definition is greyed out) this is a small hidden swatch with its size set. A method introduced by Tig. Then the material will update including any “facearea” calculations.