When we select using Alt+Drag function, it always select Objects even when we created groups. This maybe helpful in some cases but it creates issue with normal working as you see below.  If such thing is done deliberately then there should be a funtion to disable such behaviour because noramlly people will want to show the selection behaviour same for any tool. actually it also took me sometime that this alt+drag behaviour is causing the issue so it maybe creating issue for other users as well.