Yes, it still happens. To see it:
sudo apt-get install ncompress
compress FILENAME (any file will do it) -> this will create a FILENAME.Z file
file FILENAME.Z
See the result:FILENAME.Z: compress'd data 16 bits
** Changed in: file (Ubuntu)
Status: Incomplete => Confirmed
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https://bugs.launchpad.net/bugs/683668
Title:
file command in 10.10 produces wrong message
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