In a discussion on the PR for the changes to the multicol model section @mstensho and I discussed whether block direction should occur in paged contexts and also in nested multicolumn layouts.
My feeling is that we're doing this for continuous media, to essentially create what already happens when you break to new pages in Paged Media, and I'm not sure there is any case for doing this in Paged Media (given the additional complexity it raises).
Morten suggested we also state that it does not work in nested multicol contexts, which I think would also be fine.
Therefore the proposed resolution is that block direction wrapping does not happen in any nested fragmentation context (which would include Paged Media and nested multicols).
If we do resolve this, then #11977 can be closed.