When we are "Editing" the event when hiding the schedule layers (the way we used to do it), the system isn't intuitive enough to understand that you are not actually editing the productivity time, rather adding a time off on top of it.
To combat this odd behavior, we have to double click to "insert a new event", then add the time off event. With the addition of layers change how the system handles the "edit" function when in "Hide schedule layers" so that even with editing a productivity event to a time off event, it is intuitive enough not to remove the productivity event.