diff --git a/src/utils/config/api-response.js b/src/utils/config/api-response.js
index 01bef3a1376..37c800551c2 100644
--- a/src/utils/config/api-response.js
+++ b/src/utils/config/api-response.js
@@ -171,7 +171,7 @@ export async function servicesResponse() {
     if (definedLayouts) {
       const layoutIndex = definedLayouts.findIndex((layout) => layout === mergedGroup.name);
       if (layoutIndex > -1) sortedGroups[layoutIndex] = mergedGroup;
-      else if (configuredGroup.name) {
+      else if (configuredGroup.parent) {
         // this is a nested group, so find the parent group and merge the services
         mergeSubgroups(configuredServices, mergedGroup);
       } else unsortedGroups.push(mergedGroup);
diff --git a/src/utils/config/service-helpers.js b/src/utils/config/service-helpers.js
index 0e3f6e3d7e1..02743682b5f 100644
--- a/src/utils/config/service-helpers.js
+++ b/src/utils/config/service-helpers.js
@@ -699,6 +699,7 @@ export function findGroupByName(groups, name) {
     } else if (group.groups) {
       const foundGroup = findGroupByName(group.groups, name);
       if (foundGroup) {
+        foundGroup.parent = group;
         return foundGroup;
       }
     }