At the suggestion of Sean, I tried the bug 1321061 scenario again but gave the New Launcher a name and saved it before moving. That prevents the problem. You can then move the launcher into and out of expanded directories.
At the suggestion of Sean, I tried the bug 1321061 scenario again but gave the New Launcher a name and saved it before moving. That prevents the problem. You can then move the launcher into and out of expanded directories.