I don't know if this is as-designed, but I find it annoying.

If I link to a video and un-check "Automatically embed media (requires automatic parsing of links in text to be on).", and then just go back and edit the text, the media is again embedded. I need to Go Advanced and re-un-check it every time I edit the post.

I find the whole embedding of video by default to be annoying, but that's another subject.