Deep nesting like in .section { .card { .button { background: green; } } } is discouraged; flat or shallow nesting is better.
Step 2: Analyze .section { .card { &-button { background: green; } } }'s use of &-button
.section { .card { &-button { background: green; } } } nests only 2 levels and uses the parent selector & to create .card-button, keeping nesting shallow and naming clear.
Step 3: Compare with other options
.section-card-button { background: green; } flattens all into one class, losing semantic structure. .section { .card-button { background: green; } } nests only 1 level but creates a combined class that may not reflect HTML structure well.