I load all my torrents via Scan Folder plugin, all torrents are added to a group called "default"
which has a ration limit of 1.0 - that is all custom in this group.
Some torrents I later move to group called "other" which has a new ratio limit of 1.2 and new
move to location when a torrent is downloaded.

1. It seems that new version of ktorrent (git tested, today) will not apply those settings - the torrent will not be moved to
the location specified and ratio will remain as in previous group, though it is displayed under the new group called "other"
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Seems to work here with latest from git, every property of the group policy is applied.

2. minor problem is somehow still related to groups, specifically in settings -> Scan folder.
There is an option "Add torrent to group". If you switch to another group there, the apply button will not activate indicating you have
changed the default group.

Will fix this.

Are you sure that problem 2 is not causing you to think that problem 1 exists ? Are you sure that the right group is selected in the settings ?

I've reset ktorrent config and now it seems it is working, will report when a torrent will actually download and see if it is moved to the location as specified in group.

Yes, 1. works fine now.