This seems to be a feature in VS. If you look into the Form's InitializeComponent() code, you'll see that the Designer has added the second panel as a control of the first one, i.e. something like:
this->panel43->Controls->Add(this->panel41);
This arrangement seems to occur acutomatically whenever the two panels overlap in the Form Designer. So maybe you have to devise something else instead of overlapping panels.
mitrmkar
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