Photo Groups
If you edit a photo using some tools such as the integrated Red Eye tool or Clone Tool, the photo becomes grouped with other objects that modify the image in some way. For example with the Red Eye tool, the ellipse shapes that are used to modify the red eye areas of the photo are grouped with the photo itself. This is called a Photo Group and you'll see this on the status line when you select such a modified photo.
Similarly - if you enhance a photo while you have an active Mask or region, an enhance region is placed inside the Photo Group.
Just like an ordinary group it keeps the photo together with the other objects that have been added to modify it, but unlike a group it is still treated as if it was an ordinary photo by the Photo Tools and other tools. Normally photo groups are automatically placed inside a clipview object, which clips any objects which overlap the edge of the photo, to the boundaries of the photo itself. That's why when you select a photo group the status line usually shows you have a "Clipped photo group" selected.
If you want to convert a Photo Group into an ordinary photo object, you can use "Utilities" > "Optimize photo". But note that this is destructive in that thereafter you will not be able to modify any of the photo edits you've applied to the photo. Some other operations such as content-aware scaling, photo background erase and contoning also convert photo groups into flat photos, because these operations aren't able to preserve the photo group structure.
You can also duplicate/clone (Ctrl+K) objects within photo groups - the cloned object then appears as the topmost object in the Photo Group (look in the Page and Layer Gallery to verify!)
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