The orange pins on the maps are cached, so you can ignore that (that is, it’s temporary: the orange pin will eventually move “underneath” the green one in a few minutes).
I’m able to replicate the issue if I click and drag the white, circle center point. Usually I grab the red pin and not the white circle, so I’ve never noticed this before. Essentially: grab the red pin instead of the white circle and you should be able to update your locations correctly. But I would consider this a bug since it shouldn’t be possible to move one and not the other.
It seems to be a slightly different format for selecting locations on the main website upload page (no red pin), so when the Edit observation page is updated, perhaps that will be standardized?
web uploader with no red pin:

