Can you post a screenshot of the behavior you’re seeing? When you use the term group, are you referring to the Category in the details panel? If so, when I create a new category by typing in GroupName, it is displayed as “Group Name” (with the space) in the My Blueprint panel. Dragging a new variable into this group simply adds it to the group without creating a new one.
Currently if you are working with variables in a blueprint and you drag one of your variables into a group that has a camel case name such as “GroupName” the editor will add that variable to a new group called “Group Name”. I believe this is because the editor previews camel case names with a space.
Thank you for the images, I didn’t realize you were referring specifically to the dropdown menu. I have reproduced this issue and logged a report for it here Unreal Engine Issues and Bug Tracker (UE-37359) . You can track the report’s status as the issue is reviewed by our development staff.