When right clicking an element in the stage tree, even though it is highlighted when hovered, the context menu options operate on the selected element and not the clicked element.
honestly, not sure if it’s a bug. it’s been like this since i started using OV. there are hovered and selected state and are kept separately; in fact, you can see it as at the top of the right click menu and seems deliberate. though i cannot give you a reason or logical utilization of this design as a fellow OV user
p.s. it’s not just in Isaac Sim and looks to be a design persistent through all the OV apps