Error You cannot edit a `Group XYZ`. Only higher-level users have this power.

See attached usergroup tree. Why does someone from the "Moderators" group get this error message when trying to edit a profile of the group "To be moderated":

Error You cannot edit a `Group XYZ`. Only higher-level users have this power.

If a user is a member of the group "To be moderated" and an additional group "Registered" then their profile is editable. But if they are solely members of the group "To be moderated" then Moderators get the error.

I have corresponding Access View Levels for each group, in addition to other Access View Levels with multiple groups.

I also have the CB Configuration set for,

Moderators View Access Level = Moderators

and

Allow Moderators to Edit User Profiles = Moderators & Super Admins

Not sure why this is happening.

That setup won't work because they're in separate parents. Moderators has no access to the parent that to be moderated usergroups are under. You'd need to likely go higher in the permission scope by making Moderators a child of the Manager usergroup.