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For geneticists health increase to apply you need to fully breed a fighting group from scratch. That generally means the health increase doesn't apply until your next newly bred team.
That, in turn, means that the refresh button works properly, it's just that it's behaviour is a tad misleading.
This refresh button doesn't do anything to actual health; it only updates the table.
In every fighting group only the lowest amount of geneticists present during its breeding are used :Ü™