Well I tried merge visible instead technique a few of you offered and that did not work. I also checked the blending options as well. I do not have the "Blend Interrior Effects as Group" enabled anywhere since it has a default position of off (I checked them to be sure).

Strange problem. Do you think it has something to do with the Outer Glow effect since it has a default blending mode of screen?

In the end, I would like to merge down some layers to reduce my clutter but I guess can leave it as is.