Interesting. Seems to be a bug. I can place a regular layer inside a group, but not a group within a group using "INSIDE". I can also place a layer in a group, then place your g1 group into the g2 group by using PALCEBEFORE the regular layer that I placed inside that group. Unless someone has a better idea, I think a work around would be to move/create a layer within the group you want the other group moved and then use the PLACEBEFORE to move that group inside that other group. Then delete that layer.
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