Can't move notes within folders

[Gilreath 0]

Very strange bug is happening with 10.3. When we have a note within a space with multiple notebooks in it, and we try to move that note to another folder, the space containing the note is grayed out. We have to move it to the space (by just clicking on it), which puts the note within the space below the notebooks first and then all of the folders come up (the space becomes ungrayed). We have having this across all 14 computers in our office. I've taken screen shots to demonstrate.... Is this a known bug?