"This parameter can be used to ensure that if default acls exist on parent directories, they are always honored when creating a subdirectory. The default behavior is to use the mode specified when creating the directory." The problem is in the sentence "The default behavior is to use the mode specified when creating the directory". It can mean two semantically AND syntactically different things: 1) The defaut behaviour when creating the directory is to use the specified mode 2) The default behaviour when creating a subdirectory is to use the mode that was specified when the parent directory was created.
This obviously refers to the subdirectory. Semantically, there /really/ is no other meaning possible.
*** Bug 1807 has been marked as a duplicate of this bug. ***