Your are coming up against one of the limitations of continuously rasterizing/collapsing transformations. When you apply an effect to a layer that has this switch active the render order which is normally MASKS, EFFECTS, TRANSFORM changes to TRANSFORM, MASKS, EFFECTS. This is why the Write On (EFFECT) is not scaling (TRANSFORM) with the wavy line. If you disable the CT switch everything should look fine, but of course you need the line to look sharp when it’s scaled… Try doing the scaling to the layer in one extra large comp, then precompose and apply the effect to the new precomp.
The issue applying effects and masks to collapsed layers (and collapsing 3D layers) is one of the more complicated to get your head around, even advanced users come up against problems with this. I’ve personally requested Adobe provide a better explanation and give workarounds for this issue in future manuals/online help.
JD
John Dickinson
Motionworks
https://www.motionworks.com.au