Strict Duplicate Rule on Import Contacts Fails to Work, Duplicates Created

Reproduced on the Demo Site as of Aug 23.

I have a CSV (UTF8) that I am using to import.

The first import went fine, the second import i used the "fill" setting and included a field ("City") not included in the first import. I selected the default Individual strict duplicate rule - see attached screenshot. The duplicate rule didn't work. Rather than fill in city data for existing contacts as expected, new duplicate contacts were created.

This bug may or may NOT be limited to the 'fill' setting. 'Update' setting should also be checked, please.

You can find the duplicated contacts on the demo site here:
http://drupal.demo.civicrm.org/civicrm/group/search?reset=1&force=1&context=smog&gid=6