When converting labels to graphics it puts the graphics in a group layer (default GroupGraphics). When you convert a subsequent set of labels (from a different layer usually but maybe not) the default Output Layer default is the same as before but instead of adding another set of graphics to the group it replaces the group entirely.
Not sure what the point of putting these graphics layers in a group in the first place is if there is only going to be one layer in the group but it would be really good if you could choose to state a different group layer to be created or if you use the same group layer as is already in the map the new graphics would just be added to the group.
I don't know about other people but I don't really want multiple group layers with one graphics layer a piece in my map and so I'm constantly creating the graphics in a separate group, moving the new graphics layer into the original group layer and then removing the empty group. Be good if this could be streamlined.
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