Hi from Smoky California.
Theoretically the 'Liner' should mate nicely to the ID of the Cylinder - they are mated by planes and all that works as expected. When trying to mate the face of the 'Larger OD" to it's desired mate it makes an undesirable/unexpected configuration change in the Liner. Have manually moved it 'proud/recessed' and SW accepts either, only makes this undesirable/unexpected configuration change in the Liner when using 'Coincident Mate'. Tried selecting the inner faces to no avail. Really strange.
Try to mate the two parts and see for yourself.
Cheers and stay safe out there,