Ah, thanks guys.  I didn't try it since upgrading until now.  Yeah, it's still buggy.  There's no way this was how it was intended to work, because the geometry it creates is full of errors.  The extra edges overlap the faces, causing crossing normals, and just messy geometry.  The keyboard shortcut works fine, so it's not a dealbreaker by any means.  You just gotta know to avoid the button when you're insetting poly groups.  That also proves that the inset issue which happens from the button can not be intentional, because the keyboard shortcut works perfectly for the same process.  I suppose that's why it's gone unfixed for so long.  It's an issue which doesn't impact workflow at all, and most people probably never notice it.  I would like to see them fix this, because it just appears sloppy to leave a bug go, regardless of it's impact.  I've always been a loud advocate of bug fixing in 3dsmax, even when they were minor, or posed no impact to workflow.

Happy Easter, everyone!

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Tools :  3dsmax 2015, Daz Studio 4.6, PoserPro 2012, Blender v2.74

System: Pentium QuadCore i7, under Win 8, GeForce GTX 780 / 2GB GPU.