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Lets say you pick something like "Replace With->Tag". In the tag selection dialog, when you "Refresh From Repository", it not only updates the list you are looking at but it also remembers those tags. However, the dialog won't enable "OK" until you pick a tag. The combination of re-caching the list of known tags (a permanent operation) in a dialog that you can only cancel is a bit strange.
But I think that the alternative is as confusing and would cost more round trips to the server for nothing. Since we've already hit the server for the tags why not remember them?
Remember the tags is good, I just find the sequence of operations feels odd.
post 2.0
Reopening
This bug has not been touched in 2 years. Closing as WONTFIX. If you feel this bug is important, feel free to reopen it.