The user’s profile may display “In Game”, but regardless of the settings the friends page will show what games they are playing.
They know.
It’s been present for a while, and I looked to see if it was reported.
Clearly not hard enough though.
Yeah, no problem, lots of threads get lost. This has indeed been around for some time now, but I don’t think it’s a priority for them because it hasn’t been changed. I’d wait until phase 2 updates to the site and see if it gets fixed.
Create a new bug report if this is encountered again.