Comment 3 for bug 168127

Originator: YES

I have investigated the situation a bit more and I think I have found the
problem. It looks like the problem is not in the path combine operator but
in the ungroup operation. And it occurs when the global Transforms 'Store
transformation' option is set to 'optimized'.

In the original file the group containing the two letters has a transform
attribute. When the group is ungrouped the transform operation is put as
attribute in the members of the group. In the 'optimized' case the
transformation is also applied to the coordinates of the members and then
the transformation in the object is replaced by the identity transform.
However the original transform stays in the XML representation. A call to
updateRepr() solves it.