So it is a bug, and I can repeat it over and over again on several machines. It only happens with rectangle. All the other types work (Arduino shield for example).
Compound that with the inability to get out a proper BOM from the software (sadly, HTML "Shopping lists" are not BOMs) and I am unable to send off anything to manufacture. Most manufacturers (in-fact just about all) require some sort of centroid list (XYRS or something of the kind) so I think my time with Fritzing has come to an abrupt end.
It's too bad because I really LOVE this software. I have some previous experience with Eagle and it has nothing on the easy and speed of Fritzing. Unfortunately Eagle outputs the files in the right format for manufacture and Fritzing simply does not. I found a few things on the forums asking about a proper BOM etc and there doesn't seem to be an answer. I would say Fritzing is good if you want to do a breadboard, nice and visual. Maybe you can get a PCB built too but you won't be sending anything over to really be built.
Overall I would say Fritzing is the product that could still be great if a few things were fixed, but looking at the dev cycle that seems unlikely.
I appreciate everyone's help here! I like community based projects.