KB37425: Modifications to security permissions for user groups are not permeated down to the individual user objects incorporated within them in Developer 10.x

SYMPTOM:
After amending the permissions on a user group, via the Properties / Security option, it can be noted that the security arrangements for individual users within the group are not updated.
STEPS TO REPRODUCE:
This issue can be reproduced within the Tutorial project, by taking the following steps:

• Create a new user group and add at least one member.
• Access an existing user group and add 'Denied all' permissions for the new user group:
  
  

• Select the 'Security' option for one of the users within the user group for which access has been denied and note that the permissions for the new user group have not been applied:
  
  

CAUSE:
The behaviour seen in Developer is expected, since a user group is not the parent of the users belonging to that group.
The parent-child relationship between a user group and individual user objects is not the same as the one which exists between folders and subfolder objects.
All users have a common parent called "Users", whilst all groups have a separate common parent named "User Groups".
These objects are the ones which are visible in the Configuration Objects section of the Developer interface. 
As users are not the children of the user group to which they belong, they do not inherit the user group's ACLs.
ACTION:
An enhancement request has been logged to avoid showing the 'Children' column in the 'Security' window, on the basis that a user group is not the parent of of any of the users or other groups.
Strategy will continue to investigate and post updates as soon as they are available.
WORKAROUND:
It is currently necessary to modify permissions for the individual users within a user group.