diff --git a/common/src/app/common/types/shape/layout.cljc b/common/src/app/common/types/shape/layout.cljc
index 7f5e6e83a..f791eaee1 100644
--- a/common/src/app/common/types/shape/layout.cljc
+++ b/common/src/app/common/types/shape/layout.cljc
@@ -604,18 +604,23 @@
 
 (defn remove-layout-item-data
   [shape]
-  (dissoc shape
-          :layout-item-margin
-          :layout-item-margin-type
-          :layout-item-h-sizing
-          :layout-item-v-sizing
-          :layout-item-max-h
-          :layout-item-min-h
-          :layout-item-max-w
-          :layout-item-min-w
-          :layout-item-align-self
-          :layout-item-absolute
-          :layout-item-z-index))
+  (-> shape
+      (dissoc :layout-item-margin
+              :layout-item-margin-type
+              :layout-item-max-h
+              :layout-item-min-h
+              :layout-item-max-w
+              :layout-item-min-w
+              :layout-item-align-self
+              :layout-item-absolute
+              :layout-item-z-index)
+      (cond-> (or (not (any-layout? shape))
+                  (= :fill (:layout-item-h-sizing shape)))
+        (dissoc :layout-item-h-sizing)
+
+        (or (not (any-layout? shape))
+            (= :fill (:layout-item-v-sizing shape)))
+        (dissoc :layout-item-v-sizing))))
 
 (defn update-flex-scale
   [shape scale]
diff --git a/frontend/playwright/data/workspace/get-file-7760.json b/frontend/playwright/data/workspace/get-file-7760.json
new file mode 100644
index 000000000..ff33a7a94
--- /dev/null
+++ b/frontend/playwright/data/workspace/get-file-7760.json
@@ -0,0 +1,49 @@
+{
+  "~:features": {
+    "~#set": [
+      "layout/grid",
+      "styles/v2",
+      "fdata/pointer-map",
+      "fdata/objects-map",
+      "components/v2",
+      "fdata/shape-data-type"
+    ]
+  },
+  "~:permissions": {
+    "~:type": "~:membership",
+    "~:is-owner": true,
+    "~:is-admin": true,
+    "~:can-edit": true,
+    "~:can-read": true,
+    "~:is-logged": true
+  },
+  "~:has-media-trimmed": false,
+  "~:comment-thread-seqn": 0,
+  "~:name": "New File 6",
+  "~:revn": 5,
+  "~:modified-at": "~m1718094617219",
+  "~:id": "~ucd90e028-326a-80b4-8004-7cdec16ffad5",
+  "~:is-shared": false,
+  "~:version": 48,
+  "~:project-id": "~u128636f9-5e78-812b-8004-350dd1a8869a",
+  "~:created-at": "~m1718094569923",
+  "~:data": {
+    "~:pages": [
+      "~ucd90e028-326a-80b4-8004-7cdec16ffad6"
+    ],
+    "~:pages-index": {
+      "~ucd90e028-326a-80b4-8004-7cdec16ffad6": {
+        "~#penpot/pointer": [
+          "~ucd90e028-326a-80b4-8004-7cdeefa23ece",
+          {
+            "~:created-at": "~m1718094617224"
+          }
+        ]
+      }
+    },
+    "~:id": "~ucd90e028-326a-80b4-8004-7cdec16ffad5",
+    "~:options": {
+      "~:components-v2": true
+    }
+  }
+}
diff --git a/frontend/playwright/data/workspace/get-file-fragment-7760.json b/frontend/playwright/data/workspace/get-file-fragment-7760.json
new file mode 100644
index 000000000..0c8011553
--- /dev/null
+++ b/frontend/playwright/data/workspace/get-file-fragment-7760.json
@@ -0,0 +1,383 @@
+{
+  "~:id": "~ucd90e028-326a-80b4-8004-7cdeefa23ece",
+  "~:file-id": "~ucd90e028-326a-80b4-8004-7cdec16ffad5",
+  "~:created-at": "~m1718094617214",
+  "~:content": {
+    "~:options": {},
+    "~:objects": {
+      "~u00000000-0000-0000-0000-000000000000": {
+        "~#shape": {
+          "~:y": 0,
+          "~:hide-fill-on-export": false,
+          "~:transform": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:rotation": 0,
+          "~:name": "Root Frame",
+          "~:width": 0.01,
+          "~:type": "~:frame",
+          "~:points": [
+            {
+              "~#point": {
+                "~:x": 0,
+                "~:y": 0
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 0.01,
+                "~:y": 0
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 0.01,
+                "~:y": 0.01
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 0,
+                "~:y": 0.01
+              }
+            }
+          ],
+          "~:proportion-lock": false,
+          "~:transform-inverse": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:id": "~u00000000-0000-0000-0000-000000000000",
+          "~:parent-id": "~u00000000-0000-0000-0000-000000000000",
+          "~:frame-id": "~u00000000-0000-0000-0000-000000000000",
+          "~:strokes": [],
+          "~:x": 0,
+          "~:proportion": 1.0,
+          "~:selrect": {
+            "~#rect": {
+              "~:x": 0,
+              "~:y": 0,
+              "~:width": 0.01,
+              "~:height": 0.01,
+              "~:x1": 0,
+              "~:y1": 0,
+              "~:x2": 0.01,
+              "~:y2": 0.01
+            }
+          },
+          "~:fills": [
+            {
+              "~:fill-color": "#FFFFFF",
+              "~:fill-opacity": 1
+            }
+          ],
+          "~:flip-x": null,
+          "~:height": 0.01,
+          "~:flip-y": null,
+          "~:shapes": [
+            "~u86087f92-9a17-8067-8004-7cdec45bee43",
+            "~u86087f92-9a17-8067-8004-7cded1cbe70e"
+          ]
+        }
+      },
+      "~u86087f92-9a17-8067-8004-7cdec45bee43": {
+        "~#shape": {
+          "~:y": 341,
+          "~:hide-fill-on-export": false,
+          "~:layout-gap-type": "~:multiple",
+          "~:layout-padding": {
+            "~:p1": 34,
+            "~:p2": 36,
+            "~:p3": 34,
+            "~:p4": 36
+          },
+          "~:transform": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:rotation": 0,
+          "~:layout-wrap-type": "~:nowrap",
+          "~:grow-type": "~:fixed",
+          "~:layout": "~:flex",
+          "~:hide-in-viewer": false,
+          "~:name": "Flex Board",
+          "~:layout-align-items": "~:start",
+          "~:width": 176,
+          "~:layout-padding-type": "~:simple",
+          "~:type": "~:frame",
+          "~:points": [
+            {
+              "~#point": {
+                "~:x": 217,
+                "~:y": 341
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 393,
+                "~:y": 341
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 393,
+                "~:y": 511
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 217,
+                "~:y": 511
+              }
+            }
+          ],
+          "~:layout-item-h-sizing": "~:auto",
+          "~:proportion-lock": false,
+          "~:layout-gap": {
+            "~:row-gap": 0,
+            "~:column-gap": 0
+          },
+          "~:transform-inverse": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:layout-item-v-sizing": "~:auto",
+          "~:layout-justify-content": "~:start",
+          "~:id": "~u86087f92-9a17-8067-8004-7cdec45bee43",
+          "~:parent-id": "~u00000000-0000-0000-0000-000000000000",
+          "~:layout-flex-dir": "~:row",
+          "~:layout-align-content": "~:stretch",
+          "~:frame-id": "~u00000000-0000-0000-0000-000000000000",
+          "~:strokes": [],
+          "~:x": 217,
+          "~:proportion": 1,
+          "~:selrect": {
+            "~#rect": {
+              "~:x": 217,
+              "~:y": 341,
+              "~:width": 176,
+              "~:height": 170,
+              "~:x1": 217,
+              "~:y1": 341,
+              "~:x2": 393,
+              "~:y2": 511
+            }
+          },
+          "~:fills": [
+            {
+              "~:fill-color": "#FFFFFF",
+              "~:fill-opacity": 1
+            }
+          ],
+          "~:flip-x": null,
+          "~:height": 170,
+          "~:flip-y": null,
+          "~:shapes": [
+            "~u86087f92-9a17-8067-8004-7cdec98dfa7f"
+          ]
+        }
+      },
+      "~u86087f92-9a17-8067-8004-7cdec98dfa7f": {
+        "~#shape": {
+          "~:y": 375,
+          "~:rx": 0,
+          "~:transform": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:rotation": 0,
+          "~:grow-type": "~:fixed",
+          "~:hide-in-viewer": false,
+          "~:name": "Rectangle",
+          "~:width": 104,
+          "~:type": "~:rect",
+          "~:points": [
+            {
+              "~#point": {
+                "~:x": 253,
+                "~:y": 375
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 357,
+                "~:y": 375
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 357,
+                "~:y": 477
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 253,
+                "~:y": 477
+              }
+            }
+          ],
+          "~:proportion-lock": false,
+          "~:transform-inverse": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:id": "~u86087f92-9a17-8067-8004-7cdec98dfa7f",
+          "~:parent-id": "~u86087f92-9a17-8067-8004-7cdec45bee43",
+          "~:frame-id": "~u86087f92-9a17-8067-8004-7cdec45bee43",
+          "~:strokes": [],
+          "~:x": 253,
+          "~:proportion": 1,
+          "~:selrect": {
+            "~#rect": {
+              "~:x": 253,
+              "~:y": 375,
+              "~:width": 104,
+              "~:height": 102,
+              "~:x1": 253,
+              "~:y1": 375,
+              "~:x2": 357,
+              "~:y2": 477
+            }
+          },
+          "~:fills": [
+            {
+              "~:fill-color": "#B1B2B5",
+              "~:fill-opacity": 1
+            }
+          ],
+          "~:flip-x": null,
+          "~:ry": 0,
+          "~:height": 102,
+          "~:flip-y": null
+        }
+      },
+      "~u86087f92-9a17-8067-8004-7cded1cbe70e": {
+        "~#shape": {
+          "~:y": 300,
+          "~:hide-fill-on-export": false,
+          "~:transform": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:rotation": 0,
+          "~:grow-type": "~:fixed",
+          "~:hide-in-viewer": false,
+          "~:name": "Container Board",
+          "~:width": 434,
+          "~:type": "~:frame",
+          "~:points": [
+            {
+              "~#point": {
+                "~:x": 689,
+                "~:y": 300
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 1123,
+                "~:y": 300
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 1123,
+                "~:y": 741
+              }
+            },
+            {
+              "~#point": {
+                "~:x": 689,
+                "~:y": 741
+              }
+            }
+          ],
+          "~:proportion-lock": false,
+          "~:transform-inverse": {
+            "~#matrix": {
+              "~:a": 1.0,
+              "~:b": 0.0,
+              "~:c": 0.0,
+              "~:d": 1.0,
+              "~:e": 0.0,
+              "~:f": 0.0
+            }
+          },
+          "~:id": "~u86087f92-9a17-8067-8004-7cded1cbe70e",
+          "~:parent-id": "~u00000000-0000-0000-0000-000000000000",
+          "~:frame-id": "~u00000000-0000-0000-0000-000000000000",
+          "~:strokes": [],
+          "~:x": 689,
+          "~:proportion": 1,
+          "~:selrect": {
+            "~#rect": {
+              "~:x": 689,
+              "~:y": 300,
+              "~:width": 434,
+              "~:height": 441,
+              "~:x1": 689,
+              "~:y1": 300,
+              "~:x2": 1123,
+              "~:y2": 741
+            }
+          },
+          "~:fills": [
+            {
+              "~:fill-color": "#FFFFFF",
+              "~:fill-opacity": 1
+            }
+          ],
+          "~:flip-x": null,
+          "~:height": 441,
+          "~:flip-y": null,
+          "~:shapes": []
+        }
+      }
+    },
+    "~:id": "~ucd90e028-326a-80b4-8004-7cdec16ffad6",
+    "~:name": "Page 1"
+  }
+}
diff --git a/frontend/playwright/ui/pages/WorkspacePage.js b/frontend/playwright/ui/pages/WorkspacePage.js
index 3baa3ece1..c8f0c49cc 100644
--- a/frontend/playwright/ui/pages/WorkspacePage.js
+++ b/frontend/playwright/ui/pages/WorkspacePage.js
@@ -50,9 +50,9 @@ export class WorkspacePage extends BaseWebSocketPage {
     this.layers = page.getByTestId("layer-tree");
     this.palette = page.getByTestId("palette");
     this.sidebar = page.getByTestId("left-sidebar");
-    this.librariesModal = page.getByTestId("libraries-modal");
     this.selectionRect = page.getByTestId("workspace-selection-rect");
     this.horizontalScrollbar = page.getByTestId("horizontal-scrollbar");
+    this.librariesModal = page.getByTestId("libraries-modal");
   }
 
   async goToWorkspace({ fileId = WorkspacePage.anyFileId, pageId = WorkspacePage.anyPageId } = {}) {
@@ -117,6 +117,13 @@ export class WorkspacePage extends BaseWebSocketPage {
     await pagesToggle.click();
   }
 
+  async moveSelectionToShape(name) {
+    await this.page.locator('rect.viewport-selrect').hover();
+    await this.page.mouse.down();
+    await this.viewport.getByTestId(name).first().hover({ force: true });
+    await this.page.mouse.up();
+  }
+
   async clickLeafLayer(name, clickOptions = {}) {
     const layer = this.layers.getByText(name);
     await layer.click(clickOptions);
@@ -160,4 +167,10 @@ export class WorkspacePage extends BaseWebSocketPage {
   async clickColorPalette(clickOptions = {}) {
     await this.palette.getByRole("button", { name: "Color Palette (Alt+P)" }).click(clickOptions);
   }
+
+  async clickColorPalette(clickOptions = {}) {
+    await this.palette
+      .getByRole("button", { name: "Color Palette (Alt+P)" })
+      .click(clickOptions);
+  }
 }
diff --git a/frontend/playwright/ui/specs/design-tab.spec.js b/frontend/playwright/ui/specs/design-tab.spec.js
index 0c890c07e..7a43aa166 100644
--- a/frontend/playwright/ui/specs/design-tab.spec.js
+++ b/frontend/playwright/ui/specs/design-tab.spec.js
@@ -92,3 +92,35 @@ test.describe("Multiple shapes attributes", () => {
     await expect(workspace.page.getByTestId("add-blur")).toBeHidden();
   });
 });
+
+test("BUG 7760 - Layout losing properties when changing parents", async ({ page }) => {
+  const workspacePage = new WorkspacePage(page);
+  await workspacePage.setupEmptyFile();
+  await workspacePage.mockRPC(/get\-file\?/, "workspace/get-file-7760.json");
+  await workspacePage.mockRPC(
+    "get-file-fragment?file-id=*&fragment-id=*",
+    "workspace/get-file-fragment-7760.json",
+  );
+  await workspacePage.mockRPC("update-file?id=*", "workspace/update-file-create-rect.json");
+
+  await workspacePage.goToWorkspace({
+    fileId: "cd90e028-326a-80b4-8004-7cdec16ffad5",
+    pageId: "cd90e028-326a-80b4-8004-7cdec16ffad6",
+  });
+
+  // Select the flex board and drag it into the other container board
+  await workspacePage.clickLeafLayer("Flex Board");
+
+  // Move the first board into the second
+  const hAuto = await workspacePage.page.getByTitle("Fit content (Horizontal)");
+  const vAuto = await workspacePage.page.getByTitle("Fit content (Vertical)");
+
+  await expect(vAuto.locator("input")).toBeChecked();
+  await expect(hAuto.locator("input")).toBeChecked();
+
+  await workspacePage.moveSelectionToShape("Container Board");
+
+  // The first board properties should still be auto width/height
+  await expect(vAuto.locator("input")).toBeChecked();
+  await expect(hAuto.locator("input")).toBeChecked();
+});
diff --git a/frontend/playwright/ui/specs/workspace.spec.js b/frontend/playwright/ui/specs/workspace.spec.js
index 2800163b2..3682ecf68 100644
--- a/frontend/playwright/ui/specs/workspace.spec.js
+++ b/frontend/playwright/ui/specs/workspace.spec.js
@@ -92,3 +92,31 @@ test("Bug 7525 - User moves a scrollbar and no selciont rectangle appears", asyn
 
   await expect(workspacePage.selectionRect).not.toBeInViewport();
 });
+
+test("User adds a library and its automatically selected in the color palette", async ({ page }) => {
+  const workspacePage = new WorkspacePage(page);
+  await workspacePage.setupEmptyFile();
+  await workspacePage.mockRPC("link-file-to-library", "workspace/link-file-to-library.json");
+  await workspacePage.mockRPC("unlink-file-from-library", "workspace/unlink-file-from-library.json");
+  await workspacePage.mockRPC("get-team-shared-files?team-id=*", "workspace/get-team-shared-libraries-non-empty.json");
+  
+  await workspacePage.goToWorkspace();
+
+  // Add Testing library 1
+  await workspacePage.clickColorPalette();
+  await workspacePage.clickAssets();
+  // Now the get-file call should return a library
+  await workspacePage.mockRPC(/get\-file\?/, "workspace/get-file-library.json");
+  await workspacePage.openLibrariesModal();
+  await workspacePage.clickLibrary("Testing library 1")
+  await workspacePage.closeLibrariesModal(); 
+
+  await expect(workspacePage.palette.getByRole("button", { name: "test-color-187cd5" })).toBeVisible();
+
+  // Remove Testing library 1
+  await workspacePage.openLibrariesModal();
+  await workspacePage.clickLibrary("Testing library 1")
+  await workspacePage.closeLibrariesModal();
+
+  await expect(workspacePage.palette.getByText('There are no color styles in your library yet')).toBeVisible();
+});
diff --git a/frontend/src/app/main/ui/components/radio_buttons.cljs b/frontend/src/app/main/ui/components/radio_buttons.cljs
index 0d7cce294..dbaffebb5 100644
--- a/frontend/src/app/main/ui/components/radio_buttons.cljs
+++ b/frontend/src/app/main/ui/components/radio_buttons.cljs
@@ -54,7 +54,7 @@
               :name name
               :disabled disabled
               :value value
-              :checked checked?}]]))
+              :default-checked checked?}]]))
 
 (mf/defc radio-buttons
   {::mf/props :obj}
diff --git a/frontend/src/app/main/ui/components/tab_container.cljs b/frontend/src/app/main/ui/components/tab_container.cljs
index 20c79a417..1e3b99079 100644
--- a/frontend/src/app/main/ui/components/tab_container.cljs
+++ b/frontend/src/app/main/ui/components/tab_container.cljs
@@ -59,6 +59,7 @@
            [:div {:key (str/concat "tab-" sid)
                   :title tooltip
                   :data-id sid
+                  :data-testid sid
                   :on-click on-click
                   :class  (stl/css-case
                            :tab-container-tab-title true
diff --git a/frontend/src/app/main/ui/shapes/shape.cljs b/frontend/src/app/main/ui/shapes/shape.cljs
index e4082b89c..c344ec857 100644
--- a/frontend/src/app/main/ui/shapes/shape.cljs
+++ b/frontend/src/app/main/ui/shapes/shape.cljs
@@ -96,6 +96,7 @@
             (obj/unset! "disable-shadows?")
             (obj/set! "ref" ref)
             (obj/set! "id" (dm/fmt "shape-%" shape-id))
+            (obj/set! "data-testid" (:name shape))
 
             ;; TODO: This is added for backward compatibility.
             (cond-> (and (cfh/text-shape? shape) (empty? (:position-data shape)))
diff --git a/frontend/src/app/main/ui/workspace/libraries.cljs b/frontend/src/app/main/ui/workspace/libraries.cljs
index 6d5813c0d..5e354e423 100644
--- a/frontend/src/app/main/ui/workspace/libraries.cljs
+++ b/frontend/src/app/main/ui/workspace/libraries.cljs
@@ -519,7 +519,8 @@
      [:div {:class (stl/css :modal-dialog)}
       [:button {:class (stl/css :close-btn)
                 :on-click close-dialog
-                :aria-label (tr "labels.close")}
+                :aria-label (tr "labels.close")
+                :data-testid "close-libraries"}
        close-icon]
       [:div {:class (stl/css :modal-title)}
        (tr "workspace.libraries.libraries")]
diff --git a/frontend/src/app/main/ui/workspace/sidebar/options/menus/layout_item.cljs b/frontend/src/app/main/ui/workspace/sidebar/options/menus/layout_item.cljs
index 5092d025b..681e879f3 100644
--- a/frontend/src/app/main/ui/workspace/sidebar/options/menus/layout_item.cljs
+++ b/frontend/src/app/main/ui/workspace/sidebar/options/menus/layout_item.cljs
@@ -250,7 +250,7 @@
       [:& radio-button
        {:value "auto"
         :icon  i/hug-content
-        :title "Fit content"
+        :title "Fit content (Horizontal)"
         :id    "behaviour-h-auto"}])]])
 
 (mf/defc element-behaviour-vertical
@@ -288,7 +288,7 @@
        {:value      "auto"
         :icon       i/hug-content
         :icon-class (stl/css :rotated)
-        :title      "Fit content"
+        :title      "Fit content (Vertical)"
         :id         "behaviour-v-auto"}])]])
 
 (mf/defc align-self-row