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Possible way to resolve the bug is to check if the unmerged grid is still a subgrid Take note the Merge Blocks Indicate White when turned back on.Take note the 'Convert to Ship' option(bottom right) has become interactable.Take note the subgrid name differs from the parent grid name(Top Left 'Reproduce').Using the control Panel, observe the Subgrid Info tab.Disable any of the 2 merge blocks to disconnect the subgrid.Rotate the Hinge to connect the merge blocks.Note the station must be larger than the subgrid to avoid converting the station to Ship.

Build Something Similar as in the image above.

Rotor: Power off, Rotor Lock on, Angle Min/Max 0deg, Torque 0, Displacement -40mm.

Button Panel: 1=ON/OFF Merge(Station), 2=ON/OFF Merge(Subgrid), 4=Reverse Hinge.

Image : Depicting 9 Blocks(1 Merge Block, 1 Button Panel, 1 Battery, 1 Hinge, 5 Light Armored Blocks) As Station Grid on the left (red-white), 3 Blocks(1 Hinge Part, 1 Round Light Armored Slope, 1 Rotor) As Subgrid 1 in the middle(Grey), and 4 blocks(1 Rotor Part, 1 Control Panel, 1 Merge Block, 2 Light Armored Blocks) as Subgrid 2(Black) I was attempting to build a Large Air Sealable landing-bay, and discovered that when you merge a subgrid to it's parent station it will convert itself into a station as expected however after unmerging form said station the subgrid will remain a station grid.

I have a Station with a subgrid made up of hinges and rotors.

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