Bug or Feature?

Alan Page in "How we test at Microsoft" wrote:

"One particular day, I spent several hours arguing with a developer about a "by design" bug. I thought his resolution was more a result of laziness and apathy than a sincere design decision. Eventually, I think we both gave up and decided to go home for the night.I was walking through the parking lot trying to remember where I parked (and couldn't help but laugh when I saw an old Volkswagen Beetle (or "Bug") parked in one of the stalls. The car was mostly navy blue but had a yellow cover on the engine with a vanity plate centered on it. The vanity plate read 'FEATURE'."

Source: How we test at Microsoft (Alan Page, Ken Johnston, Bj Rollison),2009, pg. 197