Child gameobjects have incorrect offset (possibly caused by child world space canvas?)

I have a hierarchy that looks like this:

"Squad" has no parent, and a transform of (0, 0, 0). The problem is that some of the child objects appear to be in the incorrect position in the world. For example, "Enemy Encapsulation" looks like this:

But it has a transform of (0, 0, 0), which I assume means it has an offset of 0 relative to its parent? If that's the case, why is the object not where it says its transform is (i.e. the gizmo)? "Physical and Hitbox" and "Logic", which contain the colliders etc. also have transforms of (0, 0, 0).

I did some playing around, and found that it might have been a child world space canvas (to draw a health bar) causing the issue. Removing it seems to alleviate the problem, but why? The world space canvas is a child, so why would it affect the parents' transforms?