Un-Fittable TextFrame?? ... Or rather a bug...

Can someone please tell me what is wrong with the TOP TextFrame in the attached IDML file?

In what way it is "locked" - because when I'm trying to execute Fit Frame To Content - nothing happens?!?!

Top TF is a result of copy&paste from Word DOCX document - was part of a group in WORD and after importing to InDesign was extremely huge but easily resizable - then copied into a INDD document - then IDMLed.

After creating a new TF - by threading - and then deleting original TF - the new TF resizes perfectly fine.

Bottom TF has been created in InDesign and is perfectly fine.

I don't see anything strange in the IDML?

I've almost posted the first part - but kept digging and I think I've discovered a bug... so I've left it for context instead of posting a reply.

The same DOCX file - if IMPORTED, Ctrl+D - works fine - the same TFs WILL get resized when Fit Frame To Contents is executed on them...

Saving in WORD as RTF - doesn't fix the problem when copy&pasting.

There is no problem when the "text frame" in the WORD isn't part of the group - so it looks like there is a bug in InDesign when in the text pasted from WORD are groups...