What problem does this address?

Depending on the complexity of the nested blocks, sometimes collapsing all by default can show too few levels of the TreeGrid, making the user click several times for a good overview.

What is your proposed solution?

Dynamically determine the number of suitable levels to expand automatically depending on the number of blocks.

Here is an example that shows only one block that contains several more. Expanding to the second level helps a little. Showing more blocks would help edit faster and make it easier to understand what the content is about.

Video with proposed solution, before and after.