I hope I can help answer this -- much of the confusion has to do with the fact that CHS really has TWO different ways to mark clips as "favorites", and I probably should have picked a different term for one of those ways.
- The first way, is that each clip has a field (column) that can be checked to indicate that the clip is a "Favorite". But a better term might have been "protect" or "preserve". When you check this field, CHS should never delete the clip as part of its automatic pruning of old clips. This automatic filing/pruning of clips can be configured in various ways on the "Backup/Maintenance" tab. Personally I recommend people leave on the option that moves new clips to the old group and similar, as it keeps CHS really running smoothly if there are not thousands of clips in the New group.
- The second way to mark a clip as a favorite is to drag and drop it into the "My Favorites" group(folder). This will ALSO protect it from automatic filing, but has a second effect, which is that the clip is shown in the MyFavorites right-click context menu.
SO, I think the best answer to your question is that you should drag clips you want to appear in your favorites menu from whatever group they are in, into the MyFavorites group. Just click and hold and drag and drop into MyFavorites.
You could also try disabling the Automatic Filing options on the Backup/Maintenance tab.
Let me know if that helps!
EDIT: Now that I think about it, I'm thinking I made both ways of marking a clip as a favorite have the same effects on a clip -- to protect it AND show it on favorites menu. So just two different ways to do the same thing. So you can either move a clip to the MyFavorites group, OR leave it wherever you want and set the "Favorite" flag for it.