Alexander The Great 

I think this is more a flaw in the way it works than a bug.  A bug would be suggesting it was designed to report the fact the term is not allowed at this stage:

But it's not... it's only reported when the verification checks in because this is a verification setting and these always kick in when you confirm a segment or run a batch task:

So to answer you specifically...

Alexander The Great said:

Please advise if this is a "well known issue but not a bug" or it is "by design" 

It's by design.

Paul said:

It's by design.

thanks Paul

What a great "by design" flaw in the way it works!

Paul said:

It's by design.

thanks Paul

What a great "by design" flaw in the way it works!