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Passwords to folders only not saving?

Reporting this as a bug.
I have a website in which I want to place a holding page live but keep all the other folders under a development folder. When I try to password protect the dev folder only, it saves, but the change doesn’t apply and it remains greyed out. The only way I can get it to work is to apply a global site password, but that is counter intuitive to having a folder specific password??

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