QGIS » QGIS Application

When I embed layers from an existing project, I get unusual and incorrect behavior when the embedded project file has layers in groups. Basically, grouped layers are added to the existing project correctly, but any ungrouped layers are placed within the last/lowest group from the original project file. I've attached a couple of screenshots to illustrate this. The first show the list of available groups and layers in the project being embedded. I've selected all and embedded them into the map legend/canvas. The second shot shows how these layers were handled with the top-most layer that was not grouped (Inventory) being placed into the "group1" group incorrectly. The group1 group is the "last" group in the embedded project.

If I save this project and reopen it, the groups and the layers correctly placed into their groups are shown, but the layer that was incorrectly placed into group1 is no longer in the project. This is shown in the third screenshot.