Can anyone tell me what I have done wrong. I cannot seem to get the Layer in Enity Info to agree with the actual Layer the group is on.
Notice what happens to both floors when I turn off 1st Floor
When I uncheck the 1st floor Layer the bounding box is still there but when I uncheck the 2nd floor Layer even when I have the top group selected the bounding box also disappears.
Without looking at your model, it would appear that the geometry within the group is assigned to 1st Floor while the Group itself is assigned to 2nd Floor.
Raw geometry should never be assigned to any layer other than layer0 or Untagged as it is now known.
Did you copy a group to make the second one, then explode one and regroup it? This for example would transfer the the exploded group layer assignment to the explode geometry. A flaw/function of exploding tagged/layered objects. They take on the parent tag/layer, which can be useful but is also problematic.
If you explode anything that has been assigned a layer, while still selected reassign it to layer0.