I noticed this on my main machine, and tested in a VM.  I can confirm
this bug.  But, logging out does not fix the problem for me.

I have to re-enable the option, turn off the programs, reboot with
nothing on, _then_ turn off the option.

** Changed in: ubuntu
       Status: New => Confirmed

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Applications are restarted at launch even though "Automatically remember 
running applications when logging out" is disabled
https://bugs.launchpad.net/bugs/364023
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