Human, others,
It seems that the issue is a bug that is limited to one of the MAC versions starting with 10.7 and 10.8, but not 10.9 (Mavericks), see this thread linked to below.
https://forums.adobe.com/thread/1595973
So a switch to Mavericks with a reinstallation might be the way to solve it here and now.
It is possible to Expand the Live Rectangles to get normal old fashioned rectangles.
As mentioned in post #2, another way round it is to create normal old fashioned rectangles, after running the free script created by Pawel, see this thread with download link: