Term gets deleted if assigned to the same node that created it

I don't know whether anyone else is seeing this but here it is:

Lets say you have an artist node type, and an artist vocabulary to which you enable NAT.
And let's say you want that newly created node to be associated with that term it just created (to be used in panels, in our case), so you do:

1. You create a new node of the artist content type - a term in the vocabulary artist is successfully created.
2. You then edit that newly created node, to select that new term it created, and save it.
3. In my case the browser then spends a loong time waiting for the localhost to give back the answer.
4. After a while, I realized that the newly created term is no longer existing, and it sometimes saved the node with the term associated (but no longer existing), and sometimes it didnt get to saving it.

So I think this is a bug, though do correct me If what I am trying to do is not the right approach, but we need the taxonomy term in the same node that created it somehow, for panels2 context to work with it.