Thanks for splitting the bug reports.
Previous discussion: https://forum.inaturalist.org/t/should-subspecies-inherit-conservation-statuses-from-species/7436
I don’t think anyone on staff has really addressed the question of whether subspecies should inherit from species, but I’m assuming the argument is that in the vast majority of cases, a subspecies has a status that is at least as threatened as the species, so it makes sense to inherit/cascade.
At any rate, this is known and intentional:
The display issue is also previously documented:
and there is an open github issue to decorate these ancestor statuses.
I’ll leave this bug report open for the confusing display of the ancestor statuses (and I changed the title to reflect that). If you want a change to behavior of cascading statuses, please submit a feature request.