I don’t see a dedicated bug or issue topic for Nested mode.
it looks like the post wrench menu options are unusable in Nested view. i can bring up the menu clicking the wrench, but selecting any of the options fails with no error. have to switch to flat mode and go find the post and perform the desired action.
oh looks like switching categories from Nested Replies Testing retains the nesting state 
As it should. The way we made it, category level only applies at topic creation, doesn’t propagate to old topics.
The same applies in reverse, we don’t change the state when it is moved, or the category level setting changes.
The settings only control the default initial state.
It is a core feature, bug reports should go to the Contribute > Bug category, one per topic.
yea i moved it here after i figured it out lol. oops.