This is really a design/conception bug.
States and substates does not define namespace. Unfortunately, changing this behavior is not so easy.
As workaround, you can have:
@startuml
state Microwave {
state Open {
state Paused
state "Off" as Off1
[*] --> Off1
}
[*] --> Closed
state Closed {
state "Off" as Off2
[*] --> Off2
state Baking
}
}
@enduml
Hope this helps!