Sketch Transformation - Flat Pattern Error

What does it mean when there is a "sketch transformation" folder (that is not expandable) under my flat pattern? If I ctrl-Q in the part it will go away, and so will the pipe (like it should). However, after saving my drawing with the correct flat pattern, if I reopen it, the flat pattern on my dwg is not flat. If I go to the flat pattern config, the "sketch transformation" folder is back. Is this what is causing my flat pattern errors?

I'm running 2014, but it also happened in 2013.

SolidworksSheet Metal