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Got back to default menus by restoring ~/.config/menus/xfce-applications.menu from ubuntustudio-default-settings package. Attached is the "corrupt" xfce-applications.menu file.

autumna (autumna) wrote on 2015-04-05:	#2
from the looks of it, ubuntu studio moves <DefaultMergeDirs /> to the end of the menu file to avoid a bug in XFCE.

Menulibre moves it right back up, resulting in the problem described. It is fixed when the tag is moved back between the <Layout /> and <Menu /> near the end of the file.

(this is also a workaround)