It was never a bug in the first place, just bad design:
https://bugzilla.gnome.org/show_bug.cgi?id=663649#c3
Cosimo Cecchi, Nautilus developer, said:
"Apply permissions to enclosed files" button is only meant to apply
*permissions* (as in the values of the "Folder/File Access" comboboxes)
recursively, and not group and owner information (and it works in that regard).
The current version of Nautilus has a modified interface that makes more clear
that only permission are changed on enclosed files.
** Changed in: nautilus (Ubuntu)
Status: Triaged => Fix Released
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https://bugs.launchpad.net/bugs/822993
Title:
Applying Permissions to enclosed files in Nautilus' Folder Properties
window doesn't work
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