Bug? Not really.
Is it correct? Not even close.

You are correct that there are at least a couple issues with the FDCONFIG.SYS 
and AUTOEXEC.BAT file. 

Also, #2 should not say EMM386 when it uses JEMM386. 

The current 1.2 config files are based on a clean install of 1.1 into VMware 
Fusion. Then a some things were added, moved, changed and removed. There was 
very little feedback on them during the testing phase. So, it is good that they 
start to get some attention. They can use a lot of improvement.

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