I think you misunderstand the use of Kdewallet:
You explicitly tell it to *not* use the passwords, which for a secure wallet
just means: "do not store the password".
Hence the logic is correct, it will not store the passwords and has no other
choice than to erase those.
Normal behavior IMHO.
** Changed in: kdepim (Ubuntu)
Status: New => Invalid
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kmail forgets/looses email passwords stored in kwallet, if the opening of
wallet was canceled
https://bugs.launchpad.net/bugs/377760
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