v8 - cannot get rid of hidden text when formatting

In v8, I am trying to format a RTF document from within Biblioscape. I un-tick "Support unformat manuscript" in the options but it has no effect. I still get the hidden text in the formatted file. Is this broken or am I missing something?

Thanks.

Obviously this happened

Obviously this happened before. I should have searched first - e.g. - here: http://support.biblioscape.com/node/2304

I conclude that this is indeed broken.