Menu Nesting Permalinks Incorrect?

I was playing around with the Beta 2 version on a test blog and I noticed this while making my theme support the navigation menu functionality:

1. In my blog I have the following page structure: Parent Page, Child 1 of Parent, Child 1.1 of Child 1. The pages have permalinks https://my-url/parent-page, https://my-url/child-1-of-parent and https://my-url/child-1-1-of-child-1.
2. I went ahead and created a menu and defined the nesting appropriately for these pages.
3. When I print this menu, however, the permalinks change to https://my-url/parent-page, https://my-url/parent-page/child-1-of-parent and https://my-url/parent-page/child-1-of-parent/child-1-1-of-child-1 respectively. In other words, the child pages’ slugs are getting prefixed with the parent pages slugs.

I did check the $menu_item object to verify and indeed, the “url” attribute has the modified slugs as opposed to the original permalinks.

Is this deliberate or is this a bug?

Thanks,
Sayontan.