Hi Max,
From what I see when testing this it looks like expected behavior.
When you uncheck generated collision the checkbox is enabled for one of the LODs (LOD0) to be used as the collision mesh if you decide to change the collision complexity to use complex (per-poly) collision. If you never set this, then that checkbox isn’t used, even if it is checked.
The second part that you mention where it’s enabled for each LOD will be checked, but since you now have to select a “LOD for Collision” by assigning one of the LODs it’s never used either here.
Having this option enabled by default makes it easier from an end-user standpoint when using the Per-Poly collision model instead of generated collision. This means you don’t have to remember to go and enable this option each time, which was also often reported as a “bug.”
Is there any specific reason or concern with this being set, but not used if you’re not using the mesh itself for collision?
-Tim