We are having a problem with UpdateVariables not properly processing when we're using a custom variable within a Word variable.
We call our code to update all our custom variables first and then open the document using Aspose.Words, call UpdateVariables, and save the document back out.
Running this way does not update the variables correctly.
However, if we open our merged document up in Word, select the variable, and select Update Variable from the context menu, Word correctly formats the variable in the document.
I've attached a sample project showing this issue.