Why Do User Group Privileges Become Direct Privileges of User When User Created Group/Folder?

I have ALL my Users in a User Group. A certain Working Group/Folder this User Group has "rwdv" Privileges. This is the way I want it set up.

What happens is that as soon as one of the Users in this User Group Creates a New Group/Folder under that Working Group/Folder, the User will have DIRECT "rwdv" Privileges to that New Group/Folder.

I would have thought the User would still ONLY have "rwdv" privileges via the User Group and NOT Directly.

Is there some setting/configuration that I am missing to get the behaviour I would like to see or is this behaviour by design?

Would appreciate any help. I have attached a PDF with print-screens of the User Administration screens in Aris.

Thank you.