That sounds like a bug to me, if the password is always checked – even if it is disabled and shouldn’t be used.
And: on my install of the free version, all my downloads have been set a kind of default password (not by me). So EVERY download does now require a password, which is in that way quite unuseful. Currently I am in the process to edit every single download an remove this default password…
Maybe a change in the last update(s)?