Menu items pointing to the inactive language are not hidden when "Multilingual select" module is enabled

When I enabled 'Multilingual select' in earlier versions (prior to 1.6) menu items pointing to the inactive language was hidden. Now it's not.

The issue can be seen on the following pictures:

I have a 'Language switcher (User interface text)' block on the left which allows the user to select the language. I have two languages enabled. On the top I have a menu where some menu items point to Hungarian content while some other point to English content. I haven't enabled 'Menu translation' module, I think I don't need that since I don't want the menu to be translated, just I don't wanna to have the items visible which point to a node with a different language. I'm sure it worked prior to 1.6 since we had been using the sites this way for a long time.

If you need any details so I can help track down the problem, let me know.