I can't post the assembly because of proprietary issues- my apologies. Hopefully I can describe the process well enough to make sense of the issue and the attached picture will maybe help.
I am trying to create a fixture, and there are many components that need to be bolted on. Rather than measuring each and every hole on many different pieces, I tried editing the components that parts will bolt to and did this:
I used Copy Object to copied mating surfaces of components that will bolt on, and made sure that the Associative box was checked
I started a new Sketch, and projected the object's surface into the sketch
I created a Hole feature based on the sketch with projected edges from the copied object
When I moved the (Copy Object) part in the assembly, the cross part association failed, and the result is seen in the attached picture- the holes do not line up with the copied surface. When the error came up, a solution was to make the feature Associative. Doing so did not solve the issue.
In another test, not moving the part but simply changing the geometry the second part feature updated properly.
When I moved the component being bolted in to with the circular reference the bolt holes did not move with the component. The bolts moved with the component, but the holes did not.
Also, even when I hit apply, I had to chose the start and termination planes and the hole type and fastener type all over again, which is much more time intensive- is there a way to keep that information and just choose another circular reference? That may be faster than what I originally did, but it would still only work if it can be made associative to the reference.
This particular assembly has almost 30 components bolted on with 2-4 holes in each, so if they start to need to be adjusted it becomes a hassle pretty quickly.