That doesn't seem to be working properly if that's an intended feature. Many of the trees in this screenshot are seedlings/saplings, and if you mouse over them you can see (Right hand side, highlighted tree) their hitboxes start off tiny and scale up over time, but the sprite pops in at full size and never changes. This is true regardless whether the tree was generated naturally, or from a hand-placed spore.
https://steamuserimages-a.akamaihd.net/ugc/781853033307649612/C80AAAFB529EF9709DEB88CD7E6036CA9F8295ED/
(Ignore the derpy setup I was experimenting with the charcoal/coal/fertile soil pipeline in creative :p)
I've observed this bug with no other mods running, these are my video settings in case any of these are messing with how sprites are processed/handled:
https://i.imgur.com/8iVS6Ua.jpg