Cannot move group into group where membership was inherited

It appears to be impossible to move a Group into another group of which the user is currently not directly a member of, but where membership was inherited by a parent group. In the "Transfer Group" menu, only groups with direct memberships appear. It works for projects, however.

Steps to reproduce:

1. Create a group "A" in global namespace
2. Add own user as "Owner" to group "A"
3. Create a group "B" as subgroup of "A"
4. Create a group "C" in users namespace
5. Open "Transfer Group" menu for group "C".

Only group "A" can be selected; since the user does have access rights to "B" and is able to create subgroups in "B", they should be able to move "C" into "B".

Workaround:

1. Move group "B" into users namespace. User is now directly a member of "B".
2. Move group "C" into "B".
3. Move "B" back into "A".