This seems more like a bug report than a feature request, so I don't think it really belongs on the Idea Exchange. I tried to reproduce the problem with LabVIEW 2012 SP1, but I cannot get the same behavior that is shown in your screenshot. Can you explain the specific steps you took?
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Maybe I'm missing something here, but I still don't see the truncated names when following the steps. I do see the in place structure doesn't grow automatically though. I tried both LV 2012 and 2012 SP1.