No penetration component contact showing penetration

The two blue dot's seen in the picture above are two separate bodies. The orange/red colored rectangle is another body. Initially before any load is applied, the three bodies are touching, not penetrating, and not bonded. A global no penetration component contact was applied to the static simulation. After the simulation, I increased the deformation shape factor 8X and the above picture is the result. With a true scale deformation factor applied, no penetration between the three bodies can be seen in the simulation. If I increase the deformation factor, shouldn't no penetration contact be present at all deformation factor scales? It appears that increasing the deformation factor only applies to one body, the orange/red one.

Thank you.

SolidworksSimulation