Library loses Groups organisation when using "Replace Contents" in PS

If I insert a Cloud file layer into a Photoshop file, and then right click layer> Replace Contents, although it seems all of my Library files are available, they show up jumbled together under a group titled "Graphics" (which doesn't otherwise exist as a group in my Library files). My Group organisation of my files is disrupted. Is there any way to fix this? The same happens if I right click layer> Relink to Library Graphic.