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I'm making a reusable block with a grouping, but when I select a list, I get "no block selected" in the sidebar. Weird.
That's because reusable blocks aren't meant to become individual blocks later. It's set up so that if you change the core grouping, they change across all pages.
An example would be having an email opt-in block. If you wanted to change the phrasing on that block, you do it once and then that cascades across all pages, so you don't have to change it a million times.