Group Permission Inheritance not working as intended

Summary

Sub-members of groups are not getting the proper inheritance when using the invite group method.

Steps to reproduce

Our group structure is as follows:

We have a explicit member user of Team 'Boat' that has the permissions of Developer.

In the "Developer" group, we have granted permissions to this sub-group to inherit developer permissions across the rest of the sub groups in our 'Developers' group. I.e. allowing a developer in Team Boat to also be a developer in Team Aztec (this is working as intended). The quick explanation is our "User A" is a member of Team Boat, a developer in Team Boat and a developer in Group Developers.

We then need our Team Boat members to also be developers in our group "Dev Ops". Developers has been granted the role of Developer in "Dev Ops" but that does not work for User A unless Team Boat is added.

The goal would be that User A, member of Team Boat that is a developer should be able to use Developer Permissions within our "Dev Ops" group projects without being explicit listed as an invited group. The invite from the "Developers" group should be sufficient since Team Boat should inherit membership as that group. Unless I am misunderstanding group inheritance/invites.

What is the current bug behavior?

Need explicit group invite.

What is the expected correct behavior?

Group should be inherited with correct permissions.