We read
       match-hidden-files (On)
              This variable, when set to On, causes readline  to  match  files
              whose  names  begin  with  a  `.' (hidden files) when performing
              filename completion, unless the leading `.' is supplied  by  the
              user in the filename to be completed.
Don't you mean
       match-hidden-files (On)
              This variable, when set to On, causes readline to match
              files whose names begin with a `.' (hidden files) when
              performing filename completion. **Otherwise the leading `.'
              must be supplied by the user**.


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