Question about administration password set during Setup

[boco]

Last encountered with 1.40-rc1 (update from earlier 1.x version):

Setup asks to create an administration password, which is what I'm doing.
After Setup completes, I can connect to the server using the admin password I just created. Likewise, I can also connect fine without a password at all (password cleared).
Checking in the Settings, Administration, the Password box is unchecked, no password is set.

Do I just wrongly assume that Setup will enable that box and fill the chosen password for me?

Or should it actually be that way and it is a bug/glitch?

[botg]

Very odd. 90% of the time it works every time.