I tried to recreate this scenario on my current system running 10.13.3 but was unable to do so therefore I believe this bug has been addressed. I was however able to recreate it on a 10.13 system (the image screenshot above is from a 10.13.1 system.) I have not tried it on a 10.13.2 system as I do not have one easily available. I will update this blog if someone can test it for me. UPDATE: Thanks to @ranvel (screenshot) and @applechinfo (video) for testing, it has also been fixed in 10.13.2.
I haven’t done as much testing as I would like (I’m running up against a course update deadline after all!), but I did want to get this out immediate so it can be used for various investigations. I used the following steps to recreate this my 10.13 system.
Created a “clean” flash drive formatted “Mac OS Extended (Journaled)” using Disk Utility.app. (Quick testing shows other base formats should work similarly.) It is the Kingston DataTraveler drive labeled “Untitled” below.