While trying to distribute spacing using the Align palette, I've noticed a strange align bug which only appears to affect compound shapes when trying to align to a key object.

Steps to recreate:
1. Select two objects, one of which is a compound shape
2. Make the compound shape the key object (click on it while selected)
3. Set a distribute spacing distance in the Align palette, and click on the horizontal/vertical distribute spacing button.

Result:
The key object moves by the preset amount set and the second object get spaced from the key object by the same amount.

Expected result:
The key object should stay put and the 2nd object moves to the specified distance from the key object.

Note:
Expanding the compound shape using the pathfinder palette and repeating the steps above causes the key object/spacing to behave as it is expected to.

The attached video demonstrates the expected behaviour first and then highlights the issue. The video also shows a second issue whereby when you choose a key object without the Align palette at the forefront, the distribute spacing text entry point is greyed out.

Could be related to the following issues:
https://illustrator.uservoice.com/forums/601447-illustrator-bugs/suggestions/32727160-smart-guides-does-not-align-to-compound-shapes
https://illustrator.uservoice.com/forums/601447-illustrator-bugs/suggestions/36007084-compound-shape-bounding-box-issues