That depends on what intended behavior is. Based on Wiki (use for thumb creation) i would say this is intended:Both Mantis entries are closed and the needed files are in master now, setting this to Fixed.
Is this fully fixed though?
The files are there in master, which is great, but there still remains the issue where Artist thumbs are not regenerated on scans after new albums are added (details and link in original post).
Note: The new default setting will only take effect on a 'clean' or fresh install of MediaPortal. If you have cover art embedded in ID3 tags and update MediaPortal you should change the setting and rescan your music database.