What you were expecting to happen, and what actually happened?
Within teams that are using transform troops some bug is causing the traits of the first troop to become inactive.
What are the steps to make it happen again?
It works like this:
Team = Gorgotha, Sacrifice, Dragon Eggs, Baby Dragon. At first everything works normal. Skull damage to Gorgotha is 1/4 of the enemy's attack, as expected with the Granite Skin trait. As soon as Baby Dragon fires his spell and transforms into another dragon, enemies deliver full skull attack to Gorgotha.
This made me wonder whether this was specific to Gorgotha, so I tested with a different troop, in this case Krystenax, where one can easily see if traits are working, with the Crystalize trait: matching purple gems gives Enchant. After firing off Baby Dragon, Crystalize is not working.
I also tested this with Gorgotha and Krystenax in a different slot. In those cases everything works normally, so this seems specific to the troop in the first slot, in combination with Baby Dragon or any other transforming troop (see @Mithran's video below).
Do you have any screenshots or video you want to share with us so we can see the problem? Attach them to your post!
EDIT: changed the text, since it does not only work with Baby Dragon, but apparently with any transforming troop.