the problem explained in detail: you have 5 objects, each in a different class, and the group and nested groups are yet in other classes, maybe accidentally. When switching off single classes groups disappear, or if you work under class options>active only they go as well...
if you are working within a large team in which not everybody is aware of the benefits of using classes - it is sometimes necessary to tidy up a drawing and work with class options>active only and assign objects in rogue classes to standard classes.
it makes it also easier to control printing from sheet layers...
Right, the "the toggle switch" should just ignore - magically - that any objects are in groups, maybe oblivious of groups all together (even when working on viewports). once the drawing is tidy, all the objects are in the right classes, i want to switch back to the "groups mode enabled".
ps: groups in autocad are a nightmare...