What happened to Google Chat archived chat sessions in Gmail?

I recently noticed the chat sessions in Google Chat are archived in Gmail on a line by line basis. So each line is a new email. In the past, a chat session was just 1 long email containing the full conversation…what happened?

Upon further investigation it appears that the change on my account is due to Google Hangout and this was evident by the icon.

Was:

Now:

I confirmed this when I clicked on the email and it says at the top Hangout with xxxx, where as previously it was Chat with xxxx. What changed? How do I get it back to group the chat messages? Anyone figured this out?

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