Advanced Search is incorrectly including contacts removed from a group

I have reproduced this on the public sandbox at: http://drupal.demo.civicrm.org/

To see the issue:
1) Click "Search ... Advanced Search"

2) Expand the "Relationship" section and choose relationship type of "Parent of" and also fill in "Target Contact(s) in Group" as the group "Kindergarden"

3) Click the "search" button

You will now see the results, which list the contact "Fairy Odd Parents". This is wrong, as their child "Timmy Turner" has been removed from the the group "Kindergarden"

It seems like the field for "group status" ( inactive ) is being ignored by the advanced search.