Baby in question: http://beastkeeper.com/pet/8191

I've gone through her family line like three times. I must be missing something. It's stating that she's inbred because her parents are "closely related."  They are not.  This is how the parents family tree goes for the father:

Wild Pet x Wild Pet = Musker  |  Wild Pet x Wild Pet = Clem 

Musker x Clem = Artemis

Now this is the direct family tree to the mother:

Wild Pet x Wild Pet = Dune | Wild Pet x Wild Pet = Shira

Dune x Shira = Quinn

And for the baby in question:

Artemis x Quinn = Inbred baby?  

Nope, doesn't make sense to me at all.  The pets aren't related in the slightest. Unless these unknown "wild pets" are related, but that makes no sense to me? 

Someone please tell me I'm missing something and it's obvious, because I'm going to go insane here. xD

Uhm..... What??

I'm not seeing it either. I see no way they are related... Could this be a bug perhaps? I'm looking at the lineage and see no connection at all.... Being Preimum users we can supposedly see "the whole lineage" so... I'm confused... shouldn't wild caught pets be essentially free of having purpose for the sake of breeing novel creatures (since they are essentially new anyway (I mean.. they obviously have parents by naute, but this site doesn't account for that or show it...)).

I'm just as confused as you.

I'm guessing it's a bug, but I didn't want to post there just to be sure I wasn't missing something. xD 

I'm glad I'm not the only one who doesn't get it.  x_x  This matters a lot to me because I'm trying to breed specialty Pumas, and this completely stunts one whole lineage.  :c

Yeah... I would post in bugs. I'm sure that will get fixed. I really don't see why it would do that.... If there is a reason I haven't seen it clearly expressed or explained... so either way I think it merits attention from the admin. :)

*sob* xD  I guess I'll transfer this to the bugs forum them.  ;-;  Thank you both for the input!

:/ I hope your baby gets fixed!

You're welcome.

Looks like it was fixed. Or at least it looks like it from my end.

It has been fixed.

Tacking on to this, how far back does it take into account before it's inbreeding? Obviously within 3 generations here, but does it go back even further? Is it related at all, no matter how far back? 

hicaniplay, you're right about 3 generations. The last ones who are counted as close relatives are great-grandmothers and great-grandfathers.  If the relationship is more than 3 generations than the child won't get degeneration grade.

And does it count only direct relatives, or also siblings, aunts/uncles, etc.?

Siblings, aunts/uncles, etc. are counted too. Siblings have the same mother and/or father. Aunts/uncles has the same grandmother and/or grandfather with their nephew or niece. So these relationships are within 3 generations.

P.S. I changed the topic title so now it's a topic about all inbreeding questions. I hope Cheese doesn't mind this.

It scared me for a second that the title changed. xD I was trying to remember when I changed it, but no, I don't mind.  c:  Whatever title helps to describe the issue so people can view it later on is good for me!

Am I correct in assuming that Degeneration works the same way as Genetic Power does, in terms of how it's transferred in breeding? Ex. Degeneration Grade 1 x no degeneration= Grade 1 if most genes from that parent or none if most genes from other parents, etc.?

Haberdasher, Degeneration always increases or decreases by one grade (except the case of normal breeding and no Degeneration in parents). If parents aren't close relatives, the child won't get Degeneration grade, no matter what Degeneration grade parents have. If one parent has Grade 1 and other has Grade 0 and they're close relatives, the child will get Grade 2.