diff --git a/packages/excalidraw/change.ts b/packages/excalidraw/change.ts
index e4c6821f9..74f6239e2 100644
--- a/packages/excalidraw/change.ts
+++ b/packages/excalidraw/change.ts
@@ -1215,8 +1215,12 @@ export class ElementsChange implements Change<SceneElementsMap> {
     flags: {
       containsVisibleDifference: boolean;
       containsZindexDifference: boolean;
+    } = {
+      // by default we don't care about about the flags
+      containsVisibleDifference: true,
+      containsZindexDifference: true,
     },
-  ): OrderedExcalidrawElement {
+  ) {
     const { boundElements, ...directlyApplicablePartial } = delta.inserted;
 
     if (
diff --git a/packages/excalidraw/element/binding.ts b/packages/excalidraw/element/binding.ts
index 9ff7ded04..3320da2f7 100644
--- a/packages/excalidraw/element/binding.ts
+++ b/packages/excalidraw/element/binding.ts
@@ -739,13 +739,13 @@ export const updateBoundElements = (
     simultaneouslyUpdated?: readonly ExcalidrawElement[];
     newSize?: { width: number; height: number };
     changedElements?: Map<string, OrderedExcalidrawElement>;
-    preservePoints?: boolean; // [FIX] added
+    preservePoints?: boolean;
   },
 ) => {
   const {
     newSize,
     simultaneouslyUpdated,
-    preservePoints = false, // [FIX] default false
+    preservePoints = false,
   } = options ?? {};
   const simultaneouslyUpdatedElementIds = getSimultaneouslyUpdatedElementIds(
     simultaneouslyUpdated,
@@ -760,10 +760,12 @@ export const updateBoundElements = (
       return;
     }
 
+    // In case the boundElements are stale
     if (!doesNeedUpdate(element, changedElement)) {
       return;
     }
 
+    // Check for intersections before updating bound elements incase connected elements overlap
     const startBindingElement = element.startBinding
       ? elementsMap.get(element.startBinding.elementId)
       : null;
@@ -791,12 +793,13 @@ export const updateBoundElements = (
       ),
     };
 
+    // `linearElement` is being moved/scaled already, just update the binding
     if (simultaneouslyUpdatedElementIds.has(element.id)) {
       mutateElement(element, bindings, true);
       return;
     }
 
-    // [FIX] If preservePoints is true, skip adjusting arrow geometry.
+    // If preservePoints is true, skip adjusting arrow geometry.
     if (preservePoints && isArrowElement(element)) {
       // Only update the binding fields
       mutateElement(element, {
diff --git a/packages/excalidraw/tests/__snapshots__/history.test.tsx.snap b/packages/excalidraw/tests/__snapshots__/history.test.tsx.snap
index 75c17531a..f4527716a 100644
--- a/packages/excalidraw/tests/__snapshots__/history.test.tsx.snap
+++ b/packages/excalidraw/tests/__snapshots__/history.test.tsx.snap
@@ -683,7 +683,9 @@ exports[`history > multiplayer undo/redo > conflicts in arrows and their bindabl
   "scrollX": 0,
   "scrollY": 0,
   "searchMatches": [],
-  "selectedElementIds": {},
+  "selectedElementIds": {
+    "id167": true,
+  },
   "selectedElementsAreBeingDragged": false,
   "selectedGroupIds": {},
   "selectionElement": null,
@@ -735,7 +737,7 @@ exports[`history > multiplayer undo/redo > conflicts in arrows and their bindabl
   "strokeWidth": 2,
   "type": "rectangle",
   "updated": 1,
-  "version": 7,
+  "version": 9,
   "width": 100,
   "x": 150,
   "y": -50,
@@ -767,7 +769,7 @@ exports[`history > multiplayer undo/redo > conflicts in arrows and their bindabl
   "strokeWidth": 2,
   "type": "rectangle",
   "updated": 1,
-  "version": 7,
+  "version": 9,
   "width": 100,
   "x": 150,
   "y": -50,
@@ -789,7 +791,7 @@ exports[`history > multiplayer undo/redo > conflicts in arrows and their bindabl
   "height": 0,
   "id": "id167",
   "index": "a2",
-  "isDeleted": true,
+  "isDeleted": false,
   "lastCommittedPoint": null,
   "link": null,
   "locked": false,
@@ -815,7 +817,7 @@ exports[`history > multiplayer undo/redo > conflicts in arrows and their bindabl
   "strokeWidth": 2,
   "type": "arrow",
   "updated": 1,
-  "version": 22,
+  "version": 30,
   "width": 100,
   "x": 150,
   "y": 0,
@@ -949,75 +951,6 @@ History {
         },
       },
     },
-    HistoryEntry {
-      "appStateChange": AppStateChange {
-        "delta": Delta {
-          "deleted": {
-            "selectedElementIds": {},
-            "selectedLinearElementId": null,
-          },
-          "inserted": {
-            "selectedElementIds": {
-              "id167": true,
-            },
-            "selectedLinearElementId": "id167",
-          },
-        },
-      },
-      "elementsChange": ElementsChange {
-        "added": Map {
-          "id167" => Delta {
-            "deleted": {
-              "isDeleted": true,
-            },
-            "inserted": {
-              "angle": 0,
-              "backgroundColor": "transparent",
-              "boundElements": null,
-              "customData": undefined,
-              "elbowed": false,
-              "endArrowhead": "arrow",
-              "endBinding": null,
-              "fillStyle": "solid",
-              "frameId": null,
-              "groupIds": [],
-              "height": 0,
-              "index": "a2",
-              "isDeleted": false,
-              "lastCommittedPoint": null,
-              "link": null,
-              "locked": false,
-              "opacity": 100,
-              "points": [
-                [
-                  0,
-                  0,
-                ],
-                [
-                  100,
-                  0,
-                ],
-              ],
-              "roughness": 1,
-              "roundness": {
-                "type": 2,
-              },
-              "startArrowhead": null,
-              "startBinding": null,
-              "strokeColor": "#1e1e1e",
-              "strokeStyle": "solid",
-              "strokeWidth": 2,
-              "type": "arrow",
-              "width": 100,
-              "x": 150,
-              "y": 0,
-            },
-          },
-        },
-        "removed": Map {},
-        "updated": Map {},
-      },
-    },
   ],
   "undoStack": [
     HistoryEntry {
@@ -1096,13 +1029,82 @@ History {
         "updated": Map {},
       },
     },
+    HistoryEntry {
+      "appStateChange": AppStateChange {
+        "delta": Delta {
+          "deleted": {
+            "selectedElementIds": {
+              "id167": true,
+            },
+            "selectedLinearElementId": "id167",
+          },
+          "inserted": {
+            "selectedElementIds": {},
+            "selectedLinearElementId": null,
+          },
+        },
+      },
+      "elementsChange": ElementsChange {
+        "added": Map {},
+        "removed": Map {
+          "id167" => Delta {
+            "deleted": {
+              "angle": 0,
+              "backgroundColor": "transparent",
+              "boundElements": null,
+              "customData": undefined,
+              "elbowed": false,
+              "endArrowhead": "arrow",
+              "endBinding": null,
+              "fillStyle": "solid",
+              "frameId": null,
+              "groupIds": [],
+              "height": 0,
+              "index": "a2",
+              "isDeleted": false,
+              "lastCommittedPoint": null,
+              "link": null,
+              "locked": false,
+              "opacity": 100,
+              "points": [
+                [
+                  0,
+                  0,
+                ],
+                [
+                  100,
+                  0,
+                ],
+              ],
+              "roughness": 1,
+              "roundness": {
+                "type": 2,
+              },
+              "startArrowhead": null,
+              "startBinding": null,
+              "strokeColor": "#1e1e1e",
+              "strokeStyle": "solid",
+              "strokeWidth": 2,
+              "type": "arrow",
+              "width": 100,
+              "x": 0,
+              "y": 0,
+            },
+            "inserted": {
+              "isDeleted": true,
+            },
+          },
+        },
+        "updated": Map {},
+      },
+    },
   ],
 }
 `;
 
 exports[`history > multiplayer undo/redo > conflicts in arrows and their bindable elements > should rebind bindings when both are updated through the history and there are no conflicting updates in the meantime > [end of test] number of elements 1`] = `3`;
 
-exports[`history > multiplayer undo/redo > conflicts in arrows and their bindable elements > should rebind bindings when both are updated through the history and there are no conflicting updates in the meantime > [end of test] number of renders 1`] = `19`;
+exports[`history > multiplayer undo/redo > conflicts in arrows and their bindable elements > should rebind bindings when both are updated through the history and there are no conflicting updates in the meantime > [end of test] number of renders 1`] = `23`;
 
 exports[`history > multiplayer undo/redo > conflicts in arrows and their bindable elements > should rebind remotely added arrow when it's bindable elements are added through the history > [end of test] appState 1`] = `
 {