The configuration mentioned by you works but not sure what is the business requirement behind this implementation.
With view type as action, your modal dialog will be powered by the flow action which in turn helps you set up pre and post processing of the assignment and also the form-refresh settings as well.
You may want to explain your requirement and then we can suggest if there is any other alternative method with which you achieve your goal. Form-refresh are very less prescribed for the views unless and until it’s inevitable.
Having the user select “yes” or “add 1 record” that magically makes an item in a list appear, you can achieve the same in a regular table (with the OOTB add item link)
That said, it’s most likely a refresh issue. The UI is looking out for changes in “text property” but not changes in the embedded list. If you put a visibility condition on that list, visibility = always, then that will force a refresh from the server. That’s usually my first step if lists or embedded views aren’t updating.