Steps to reproduce:

1.Open a page with VE
2.Go to Cite>Basic
3.Inside Basic Reference dialog , Go to Cite>Website and add it
4.Click on "Insert"
5.Save the page

Observed Result:
Instead of saving it as <ref>{{Cite web }}</ref> , it is storing <ref><ref>{{Cite we }}</ref></ref>
On Readmode, you will see just </ref> tag instead of citation
Reopen the page and you will see it is appearing as a Basic reference instead of Citation.
If you opening the dialog for it , you will see <ref>{{Cite web }}</ref> appearing inside