Transform Effect jumps around when Collapse Transformation is enabled

Question

I created a reflection on one of my vector based animated layers. Then decided to apply reflection with Transform effect.
It all held true before I assigned "Collapse Transformation" and my Transform effect is going awry. Basically because there is zoom out with the camera and scale as well.
Transformation's Anchor points and Distance are note keeping up with the movements and reflection is jumpint all over the place.
Where should this Transformation effect be applied. On the first level when I created my PreComp1 with all the layers (and then PreComp1 is getting nested within other PreComps) or at the very end at the Final PreComp for render I should apply this effect.
It seems to jump around in any case...

Answer 1

I read the help, it states that Collapse Transormation buttons treats the PreComp as seprated layers, which preserved 3D treatiment for casting shadows and does not cut off shapes by PreComp size.
It seems to work for me that I check continuosly rasterize on each individual illustrator imported layer (inside the PreComp1), so when I enlarge the shapes they stay crisp. Then I keep on checking Collapse transformations on all consequtive PreComps and everything stays sharp.
My question is at what stage I would better apply Transform effect, which doesn't seem to work. Should it be on the PreComp1 layer with all the Continuoiusly rasterize enabled or on final Render Out PreComp where "Collapse Transformations" is checked off?
In eather way because of movement of these illustrator layers, Transform position seems to be fixe on screen, but is not relevant to shape movement whithin the PreComp1.
What previously worked for me was that I applied Transformation on each individual illustrator layer, however I did not enable "Collapse Transformations" in and consequtive PreComps. As soon as this feature is enabled everything goes awry....