I think it’s by design. It happens in a lot of packages, excel, for instance ( being the next random things that comes to mind ).
I’ve seen this issue around a few times and am shocked it is either never answered or is just dead or not a frequent topic. I’m using version 4.26.2 and just started using UnrealEngine about a week ago. After making several edits in any program, nearly developer will instinctively click CTRL+S… but that wipes out all save history. That kinda ruins the point of saving at all.
Even if this isn’t something that’s willing to be fixed, I’d at least like to hear a reply to it whether “no we won’t fix this” or “we are still working on it”