Empty login block title renders despite block not being needed

Hello.

As per conversation with merlinofchaos, I am having an issue with Panels 2 Alpha 6. I have created a flexible layout, and have included a login block in one of the panels. I set the access restrictions to 'anonymous' so that it only shows for anonymous users, and not for logged in users.

However, while the block itself doesn't appear, the title for it still renders for authenticated users.

This behaviour can be seen by visiting one of my in-development sites at http://cosplayuk.brianvuyk.com/ and logging in with:

username: test
password: test

then re-checking the front page. The title of the login box should still be rendering.