{expand-on} has some limitations, is generally confusing, and doesn't work with the revamped underlying Reporting library. The solution is to create a new {expanding-reporter} to wrap around existing reports to achieve the same result with better flexibility.
For example, to list all grandchildren of the current page, you would do this with {expand-on}:
This will display the children of the children of the current page, ordered first by the title of the child, then by the title of the grandchild. There is no way to order the output only by the title of the grandchildren.
With {expanding-reporter}, it would look like this:
This will expand on the 'content:children' property of each of the children returned by the local-reporter. It will sort by the grandchild title, not the child title. If you wanted to sort by the child title, you would add {text-sort:content:parent > content:title} before the other text-sort.
It is still accessed the same way in the report-body, in this case {report-info:expanded:item} for the child and {report-info:expanded:grandchild} for the grandchild.