What steps will reproduce the problem? 1. Group some objects 2. Arrangement option missing

What is the expected output? What do you see instead? Groups should be arranged the same way as individual objects

What version of the product are you using? On what operating system? Standalone version 1.2; Windows 7,

Please provide any additional information below.

Still not fixed in Version 1.3.4 Windows standalone. IMO this is a serious bug - you very quickly will end up working with a little more comnplex sketches and then you are lost! This renders Pencil quite useless.

I think I have a fix for this. I think this calls out another issue, that groups automatically become top most. I think instead the arrangement of a new group should be flattened to the lowest arrangement of the group. Anyways I'd like to help out on the project if I can get rights to write.

I agree with this issue. It is quite annoying really...