ID 509411 - Group Hierarchy is lost when dragging the selected group somewhere else in the Shader Tree.

Problem summary
Group Hierarchy is lost when dragging the selected group somewhere else in the Shader Tree.
 
Customer reported version
modo.16.0v1
 
Customer reported platform
windows11
 
Steps to reproduce
 
1) Open Modo and inside of the 3D viewport press the 'M' key to create a new material.

2) Leave all of the default settings and select OK.

3) Go to the Shader Tree and Shift-click and select both the Default Material group item and the containing material item:

 
4) Drag and drop the group underneath the Base Material, notice that the group hierarchy is lost.

 
Expected behaviour
The group hierarchy should remain intact.
 
Actual behaviour
The group hierarchy is lost.
 
Workaround
Move groups with only the top of the hierarchy selected.
 
Reproduced by support
 
This bug has been reproduced in:
16.0v1 - Windows 11, macOS 10.16 -regression
 
Unable to reproduce bug in:
15.2v4 - Windows 11, macOS 10.16
 
Earliest version tested
15.2v4 - This issue doesn't appear in this version and has regressed.