Created an empty project with some empty services just for this. The project id is "5c7c4acc-f3a6-474d-a5b8-2f7e17bb4308".

Here is a screen cast of the issue. First I create an "outer group" and put "inner group" inside it. Then, I uncheck outer group as inner group's group. So far so good.

Then at 0:25s I create a new outer group and set inner group as outer group's group. Recursive grouping should not be allowed. Then I uncheck outer as inner's group hoping to remove outer. Then everything vanishes.

Side note, there is a reset canvas option within the command pallet.

+1 to what Brody said. That should "fix" this for now

We'll look into this internally. I've bound this thread to a Linear ticket so we can update as we resolve it!

Since it's empty I'll this project as is so you can inspect it. Will reset the others. Thanks all.