Dynamic Menu Management is broken with overlay on

Tested with overlay on

I've tried to hunt down all the issues that others have created involving the menu module for the latest CVS of Drupal 7. Although some issues I found spoke of a few of the issues I found non specify all the issues that are going on with menu module. First let me describe the issues I'm seeing, how to reproduce, and finally list all of the issues that I found that might be related to the this one.

Issues with Menu

1. It is possible to orphan a child of a parent tree
2. It is possible to steal the children of another parent
3. Sometimes, a menu you click and drag does not unfocus when you active the mouseup event
4. Sometimes, menu items will not respond to child -> parent or parent -> gestures

How to reproduce

1. Disable Overlay (if you don't have it disabled already), Then re-enable it.
2. You can clear the double admin toolbar by going to #overlay=admin/config/development/performance, please do so to complete the remaining tests
3. Go to #overlay=admin/structure/menu/manage/management
4. Drag the first child, Article, above its parent. It's possible to do this in a way that keeps Article a child, but without a parent
5. Drag Article to the left, making it a parent. Release the mouse
6. Drag Article down one unit, you will see that Article will steal the children of Add new content. Release the mouse
7. Drag Article down further and you will see all of Add new content will follow Article as you move it.

Also I should say that performance of this javascript behavior is noticibly worse when overlays are on.