bug: bug with grouping and ungrouping buttons and separate text

Now that I've had my moment of clarity. A normal group can only be on one layer, so that would explain the first part with MouseOver being moved to MouseOff.
It still moves an object from a hidden and locked layer to a different layer, which you don't get an alert for, but that seems to be the nature of Soft Groups.

The second part I assume is the program being "smart". 'He probably wants this new group to be a link, so let's make it a link'. And by ungrouping that change will stick and not revert to the settings the objects originally had.

I need to stop using normal groups when working with websites (even temporarily), unless I actually want to export something as one image.