Alright, after reading John Clements post I have been able to reproduce the error. The buttons I was using are move to layer in front and move to layer/frame behind. These buttons work fine.

I wasn't using the move button in the layers gallery. I've never used this button in the past and I didn't even know it was there. This is the button that causes the error.

But I agree, don't use the button until it's fixed.

So at this point, my hard drive is working over time while Xara tries to resolve this command.