When a parent object is transformed, that transformation is passed on to it's children (overlays, visual contents, etc). This transformation, unfortunately, happens around the child's origin instead of the parent's origin. This is not a desired result.
Numbered Steps to Reproduce Problem:
1. Create an object
2. Put an overlay / visual contents on it with an offset
3. Rotate the original object
4. Watch as the children rotate around the wrong origin
Code Snippet (if applicable) to Reproduce Problem:
Expected Results:

Actual Results:

Does the problem occur:
Every time? Or how often?
In other games?
In other user accounts?
On other computers?
When does the problem NOT occur?
Did the problem NOT occur in any earlier versions? If so, what was the last version that worked? (Visit http://www.byond.com/download/build to download old versions for testing.)
Workarounds:
Use KEEP_TOGETHER but this has performance overhead and it doesn't work if your overlays/visual contents span multiple planes
Currently visual contents use pixel offsets. I do see however thst there would be a potential advantage to usong transforms instead--the trick is that the transform would have to be calculated based on map format and client.dir, but that's doable.