not a bug, that combination does exactly this. motion blur amount is shutter openness: at 1.0 the shutter is fully open across the frame so the 32 temporal subframes blend into one smooth streak, at 0.1 each subframe is nearly frozen and spread across time, so you see the discrete steps as ghosts on teh plate.
rule of thumb: blur amount and temporal count are one tradeoff, not two knobs. high temporal (16-32) wants blur near 1.0, low blur wants temporal down at 2-4. with AA method None plus override you are also working without any accumulation filter, so every step shows. try temporal 8 with blur 1.0 as a baseline and compare.