Requiring a prefix in an area shouldn't require the prefix on the area itself, so I think it's a bug. If I create a new area, and the only prefix I allow in it is "SMBC", then I should not have to use that prefix on the area itself, only pages in that area. It should however, require that all child areas require that prefix. But this is not possible.
Even if I put "SMBC:" before the title, I still get the error.
Both case 1 and 2 are true. Case 2 I only tried on a subarea.