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How to reproduce : 1) Open Options dialog 2) Change Option Editing|Editor Settings|Plain Editor|->Indentation Engine|... ->Expand Tabs to Spaces (from true to false) Try type tab in text editor. There is typed spaces, but should be typed tab character.
It works in a different way than you think. Typing TAB in the line indentation area virtually always inserts amount of spaces given by "Number of spaces per tab". If the "expand tabs to spaces" is false then the indentation (let's assume indent-column is 20) is composed by true '\t' characters for (indent-column / "tab size option") i.e. 20 / 8 = 2 so there will be 2 '\t' characters inserted. The rest i.e. 20 % 8 = 4 will be left as spaces i.e. after two '\t' characters there will be 4 spaces.
Ok, it works correctly. ->Verified