yes it is repeatable, the exact syntax of my data is as shown above for item B1. If a i add 2 spaces betweed the - and Business OR between Business and Development, the related items are not available for selection, when i remove the extra space it works fine. I did another test on item B8 and it failed also so it does not matter which item in the list contains the duplicates space,
I added an extra space to a item in the related (chilld) list and it showed up as expected so the problem appears to be limited to the the parent list
Sorry, but it looks like a bug for sure.