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Oh freaky! Could be that it cannot properly update its angle of rotation if its contents change size and whatever. Also, it's scaling up and clipping into the ground which is making it collide and freak out too.
For testing, try adding a chip in the centre of the group and turn on "xray" (menu > show/hide) so you can see where the centre of the group actually is. My guess is the ball is somehow moving away from the centre of the group which is why it seems to lazily woblle around some other central point.