It is not a glitch. They are allowed to impose restrictions on award reservations as long as they are the same as those for paid reservations.
Vail Marriott, where I've stayed over 250 nights, does this all the time and this practice has been discussed preciously here on FT if you care to do a search.
In Vail's case they have a 45 day cancellation policy for paid and award reservations. I have never had to cancel a reservation so don't know what they would do; I have always assumed they would charge me the going paid rate at the time of default. Note that in the case of the Vail Marriott their cancellation policy does not restrict changes, so I have reduced the number of nights (not in the case of what's discussed in the next paragraph) and also changed the room rate to a lower rate within the 45 day period. Since my reservation was prepaid in full at 45 days out the reduced rate resulted in a credit on my bill which I applied to meals and Spa during my stay.
Vail also used to have a 7 day minimum for holidays, and still may, but I don't go there over holidays. The 7 day minimum applied to both paid and award reservations.
I don't know if any of that helps, but that has been my experience with non-refundable and restricted cancellation policies for both paid and award stays.