Local visibility makes header always visible

[Eduardo Suarez]

Say next org file, where I want the content of entry ABA not to be shown (e.g.
because it is not important).

--- BEGIN ORG FILE ---
#+STARTUP: content
* A
** AA
** AB
*** ABA
:PROPERTIES:
:VISIBILITY: folded
:END:
**** ABAA
**** ABAB
**** ABAC
** AC
* B
* C
--- END ORG FILE

This works as expected an entries ABAA, ABAB and ABAC are not shown at startup.

However, if I change startup visibility from 'content' to 'overview', I would
expect only first level headers to be shown. However, what I get is:

--- BEGIN ORG BUFFER (VISIBLE) ---
#+STARTUP: overview
* A...
** AB
*** ABA...
* B
* C
--- END ORG BUFFER (VISIBLE) ---

Is this intended behaviour?