This article explains the difference between moving and connecting items when dragging them to another group.
Drag and Drop Actions
With more than one group created, the items can be moved around by dragging and dropping.
This action will result in the items being present in both folders without any duplication occurring.
The system will ask you to choose an action:
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Move
This option moves items from the original group to the new group. Items are removed from the original group and appear only in the new group.
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Connect
This option creates a link so the same item appears in both groups. Items remain in the original group and also appear in the new group. Important: The item is the same entity, just visible in both locations. Changes to this item are synchronized across all groups where the item appears.
To learn more about multiple ways of organising items in the catalog, see this article.