Hi P.W., I happened to find your bug report. Because it was a little bit alarming, I wanted to see if I could reproduce it. I could reproduce what you saw (the merged nets), but I found that the cause was a wire which was graphically hidden by the edge of the hierarchical sheet.
There is a wire segment on the root sheet (bug_hlabels.sch) directly between the hierarchical sheet pins cd1 (6.150, 2.300) and cd2 (6.150, 2.450). If you move the sheet out of the way, you can see the wire. I've attached screenshots to help illustrate. I guess this might leave something to be desired in the UI, but it was possible to track down the cause by moving things and deleting them. Hope this helps, -- J.P. Larocque <jpl-debian-...@thoughtcrime.us>
