Merge requests and issues don't show for all subgroups

Summary

In specific subgroups, merge requests (and probably issues but we have issues turned off) are not showing up.

On an unrelated note, the count for the MRs on the group levels are extremely incorrect. Usually showing 1 or 2 MRs when there are 30+. Even creating new MRs doesn't change it.

Also: Corresponding behavior doesn't work for issues either per https://gitlab.com/gitlab-org/gitlab-ce/issues/30106#note_60247506.

Steps to reproduce

I'm not sure if this is how to reproduce it, but I will explain our group/project layout here:

• Primary Group (MRs show here)
  • Software Engineering (MRs show here)
    • Internal Services (MRs DO NOT show here)
      • Internal Information Management (MRs show here)
        • project1
        • project2
        • project3

Note: @victorwu set up a dummy group structure reflecting the above subgroups/projects. See https://gitlab.com/groups/raccoondogs/-/merge_requests.

What is the current bug behavior?

Merge requests are not showing in this specific level of subgroup

What is the expected correct behavior?

Merge requests should show

Relevant logs and/or screenshots

Output of checks

This bug happens on GitLab.com