Manage Groups display shows disabled groups on initial display - but disabled groups option is NOT selected

When you go to Contacts>Manage Groups the option to display disabled groups is not checked. However, disabled groups are displayed.
I've replicated this on drupal.demo.civicrm.org

1) mark a group as disabled
2) go to Contacts>Manage Groups
the group will appear on the list even though only groups with a status of Enabled are supposed to appear.