After partitial upgrade of pending packages the behaviour reversed.
Now after reboot turning off bluetooth still displays 'turn off' as an option
and 'turn on' is greyed out. The icon also remains after turn off.
** Changed in: gnome-bluetooth (Ubuntu)
Status: Fix Released => New
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https://bugs.launchpad.net/bugs/815539
Title:
[Oneiric] When bluetooth is disabled via indicator the entry to turn
it on again is greyed out
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