Hello Zachary, Victoria,
We reviewed this item and believe that the observed behavior is correct and by design.
The TileLayout tiles move up and to the left automatically *only* when this does *not* lead to tile reordering. In the discussed scenario:
If the desired behavior is important to you, we can convert the bug report to a feature request and wait for it to gather enough customer votes for implementation. In this case, please also elaborate on the general behavior that you would like to see. Note that in more complex layouts, automatic tile reordering may force users to "fix" their layouts. In other words, the feature may cause more problems that it will solve.
Regards,
Dimo
Progress Telerik
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