Import Contacts no longer checks contact type, instead contact type is changed

Not sure if this is a bug or by design. But in earlier versions if I imported a file containing Internal Contact ID of BOTH Individual and Household, it would only import one contact type. The other type would be rejected as "mismatch" (see attached error file) after step 4.

Now in 4.4 the import seems CHANGE contact type to the type specified in step 1. For instance in 4.4 if I select contact type "Individual" in step 1 and import a file with 150 individuals and 35 households, after the import I will have 185 individuals and zero errors. Previously I would have 150 imports and 35 errors.