Auto-Indent does not follow use spaces instead of tabs setting

[Nodding]

 xed - Version 3.2.2
 Linux Mint 20.3 Cinnamon

Auto-Indent does not follow use spaces instead of tabs setting

Steps to reproduce

1. Under Editor>Indentation set "Use spaces instead of tabs" to false and "Automatic indentation" to true.
2. Create an indent, then delete it to verify it uses a tab and not spaces.
3. With an indent create a new line
4. Delete the indented area to see it is still spaces

Expected behaviour

Automatic Indentations should switch from spaces to tabs when "Use spaces instead of tabs" is false (implying it is using tabs.)

Other information
Will provide as needed.