Merged messages broken in Hangouts?

[mrmoe110]

Is merged message threads broken for anyone else in Hangouts? I noticed it after my Moto 360 got the 5.1.1 update over the weekend. I've got the feature checked in settings but threads are still not merged, when they previously were.

 

[NeoGrayFox]

Yes, Galaxy S4 here, just noticed all my conversations are separate.