While trying to move something back from org, I was able to move it to personal folder.
Folders in Bitwarden are organizational constructs. They’re essentially hierarchical tags. They don’t actually indicate anything about where an item is stored within Bitwarden. They are completely orthogonal to organization collections. They are per-user, i.e., when you create a folder in your Bitwarden account and put something in it, the folder and its contents are visible only to you. Other users have no idea what folders you have or what’s in them, and they can put the same items in completely different folders.
You didn’t actually “move” the item referenced above into a personal folder. You associated it with a personal folder. This had no impact on its status of being owned by the organization and associated with zero or more collections within the organization.
In short, folders and collections are completely different namespaces. Folders are per-user, collections are shared. Changing an item’s folders doesn’t change its collections an vice versa.