TPanel.AutoSize does not work in a particular situation

Question

In a Delphi 10.4.2 Win32 VCL Application on Windows 10, I use a TPanel with AutoSize = True.

The documentation says:

When AutoSize is True, the control resizes automatically when its contents change.

However, this is not the case when the size of its contents changes at run-time in this particular situation:

Place these controls on a VCL Application form:

object Button1: TButton
  Left = 40
  Top = 56
  Width = 81
  Height = 25
  Caption = 'Button1'
  TabOrder = 2
  OnClick = Button1Click
end
object Panel1: TPanel
  Left = 40
  Top = 104
  Width = 161
  Height = 19
  AutoSize = True
  TabOrder = 1
  object CheckBox1: TCheckBox
    Left = 1
    Top = 1
    Width = 159
    Height = 17
    Align = alTop
    Caption = 'bla bla bla bla bla bla'
    TabOrder = 0
    WordWrap = True
  end
end

Then, in the Button's OnClick handler, place this code:

procedure TForm1.Button1Click(Sender: TObject);
begin
  Panel1.AutoSize := False;
  try
    Panel1.Width := Panel1.Width - 10;
  finally
    Panel1.AutoSize := True; // trying to refresh the Panel's height
  end;
end;

This decreases the width of the Panel by 10 pixels each time.

However, the Panel's Height is not automatically resized!

How can I manually resize the Panel, so it reflects the changed Height of the Checkbox?