Dot is the only program that uses the concept or “rank”, so ranksep does not apply to circo. It does not hurt anything, it is just silently ignored. nodesep does not seem to apply to your specific graph, because for circo:
nodesep affects the spacing between loops on a single node, or multiedges between a pair of nodes
To fix your problem, add the mindist attribute (graph-level) (mindist | Graphviz).
This will increase the distance between nodes.
This: