This is the expected behavior of tokens. Those with sight, that are controlled by a player, always appear on top of other tokens, to help players select their character. There are a couple of options. Place the torch setting on the character instead of a separate object. You don't need to see a physical torch token. If you want an indicator of who is holding the torch, you can use a token marker. Group the two objects. This takes a little finesse, as the grouping behavior is quirky. To move a single object in a group, click on the object and move it. To move the entire group, click once to select the group, and then click and move.
