Shouldn't this be on POST?
Indeed, thanks for noticing!
Fixed and verified in 5.6.1.2.20160810181333_8ba817b. Policies tree expands normally without recursion.
Since the problem described in this bug report should be resolved in a recent advisory, it has been closed with a resolution of ERRATA. For information on the advisory, and where to find the updated files, follow the link below. If the solution does not work for you, open a new bug report. https://rhn.redhat.com/errata/RHSA-2016-1634.html