It certainly doesn't work for an XControl in a VI that is inside a subpanel .
In my particular case, I had a child window of the main application, which had a SubPanel, which in turn hosted a VI with an XControl.
The Xcontrol had multiple panes and had a color ramp in one of them. Since a color ramp (z-scale) doesn't resize with panel (only the color box part does), I had to resize the color ramp height on pane resize. Now every time you resize any component in this chain, it produces a million pane resize events and you see the color ramp resizing animation for a while after you are done resizing. This issue made me search for the topic and I landed on this page.
After failing to catch the "ending only" of the resize operation at the XControl level and the SubPanel, I have resorted to catching this event in the child window and then pass the message through the VI in the subpanel to the XControl. Not an elegant solution, but it works.