Copy from within component and paste to model space

I’ve only found this when the z axis(blue) is rotated off of vertical:

Normally when entities are copied from within a group that has been rotated, the selected entities are orientated according to the axis within that group. This works 100% for groups or components that are nested within the group you are copying from. It even works if your selection contains multiple entities and one of them is a group/component.

However if there are no groups/components within your selection (ie it’s all faces and edges), then the pasted entities are orientated as if the axis was the model axis when the selection was copied.

In the below image, the large box’s surfaces are coloured in accordance to the axis direction a push-pull action would move it. The first smaller box on top of it is a group, the second are individual faces within the group. The smaller boxes in front of the larger one have been pasted - note that the orientation of the colours in the small grouped box changes every time when changing the red/green axis. All perfect until the last box.

I fail to see your point

I created a large rectangular box and on top a nested smaller box (thus grouped) and a second one, ungrouped next to it. Prety much like your example.

If I copy the nested group and its neighbour to clipboard I can paste the clipboard content inside editing context and outside editing context, all oriented according to the (then) current axes.

I can do the same with only the ungrouped little rectangular box. both in and outside editing context.
Do I miss the point you are trying to make?

The three main entities are unique components with the axis changed. When I change the Z axis (blue), then the copied entities don’t orientate to match the axis of the enclosing component UNLESS they are in a group themselves.

It’s no a big problem and I can work around it, but it shouldn’t be happening.
(Maybe this will help…)

I also see weird behaviour in the last group when copying the smaller nested and unnested box.

I’m trying to bring this down to an even simpler model with same behaviour to see what I/(you) vs SketchUp are/is doing wrong. Or to find an explanation.

In the mean time, see if unguing the nested component helps you to get a more expected behaviour.
(right click on group > Unglue)

I’m thinking this has to do with the fact that a ComponentInstance or Group has its own transformation relative to its parent Entities but loose geometry does not - though I’m struggling to understand why the result is different when you orient the blue axis of the outer group horizontally.

I made my own model just looking like @gadget2020’s but think it would be best to work with his model. To see his results. For now I can’t get my finger around it, i.e. see the same weird behaviour. I see other “miss”-placed behaviour in my model.
Ungluing helped for the nested component.

I can reproduce what @gadget2020 showed. All the other cases copy-paste in ways that make sense for the Component axes. That is, the pasted copy is oriented the same way with respect to the model coordinates as the original was oriented with respect to the ComponentDefinition’s coordinates. But when the blue ComponentDefinition axis is reoriented horizontally, nested Components are handled as in the other cases, but pasted loose geometry is oriented the same way in the model as it was in the as-viewed ComponentInstance.

This inconsistency strikes me as a bug!

PS in my test nothing was glued.