To understand the behavior of composite fluid particles such as nucleated cells and double emulsions in flow, we study a finite-size particle encapsulated in a deforming droplet under shear flow as a model system. In addition to its concentric particle-droplet configuration, we numerically explore other eccentric and time-periodic equilibrium solutions, which emerge spontaneously via supercritical pitchfork and Hopf bifurcations. We present the loci of these solutions around the codimension-two point. We adopt a dynamic system approach to model and characterize the coupled behavior of the two bifurcations. By exploring the flow fields and hydrodynamic forces in detail, we identify the role of hydrodynamic particle-droplet interaction which gives rise to these bifurcations.