Selecting "Add Report to Navigation Menu" without selecting a parent menu adds report to top-level menu.

We need to add a confirm dialog for the user if they check "include in navigation menu" and don't select a parent menu item - since this is PROBABLY not what they want to do.

"You have chosen to include this report in the Navigation Menu without selecting a Parent Menu item from the dropdown. This will add the report to the top level menu bar. Are you sure you want to continue?"

— original post —
After I created a custom report, it shows up here:
<site.org>/civicrm/report/list&reset=1

But it doesn't acknowledge that I have checked "Include Report in Navigation Menu?" in the report settings. I have rebuilt the menu at <site.org>/civicrm/menu/rebuild/?reset=1 Still the new report is not in the list.

Unless I am misinterpreting the nature of this feature, or the desired result, this is a bug.