Cannot view unpublished content authored by different user even with "View Any Unpublished Content"

Steps:
* Create a custom content-type
* Create content for this content-type as admin
* Unpublish content as admin
* Create Moderator group
* Assign Moderator group "View any unpublished content" (and also enable all the other view-unpublished options)
* Assign view own unpublished content under Node
* Login as Moderator user
* Go to admin/content and filter on the custom content-type (or on unpublished content)
* The content that was unpublished as admin does not appear in the list

The only way the unpublished content is visible to the Moderator group is by enabling "Bypass content access control" for the Moderator group.

Is this a bug or a configuration issue? I've tried a number of different things, but from what I can tell view-unpublished is not working (but again, it could be my misunderstanding or misconfiguration).