[PROTOTYPE]- Hover states are not triggering properly/consistently

The problem:
Hover states often persist when trying to mouse over objects. In the attached video you'll see a default state and I click through the hover state elements and you see the bounding box. Then in testing you'll see that the  hover state persist when I'd like to activate the adjacent button. This is also seems to be an issue when a button is alone in a group. In the second video you see a continue button, which will deactivate the hover, but will not reactivate it until I mouse outside it's group's bounds. 

How do I make this work better? It's difficult to show clients things that appear to not work. 

{Renamed By MOD}