[1289] Cannot transition child routes

Nuxt Version: 1.0.0-rc3

Issue

Cannot transition child routes.

Current behaviour

Take the following pages structure:

/index.vue
/contact.vue
/contact/index.vue
/contact/step1.vue
/contact/step2.vue

In contact.vue we have a <nuxt-child/> component to pull in nested route components. When navigating between the nested routes (/contact, /contact/step1 and /contact/step2) the parent component contact.vue transitions the whole content using the default page transition.

Expected Behaviour

When navigating between nested routes, only the <nuxt-child/> component content should transition. It should also transition with its own transition setting rather than the default page transition.

Reproduction Repo

https://github.com/samturrell/nuxt-nested-routes

Comments

I feel like it's very possible that i am doing something wrong here, but I can't get it to work no matter how hard i try. The strange thing is when HMR kicks in it transitions the nested route component properly, but it never works when navigating via vue