How to show translated taxonomy terms in term listing in content listing style
Yes, it kind of is a bug.

The page is I think one of the the only two lists (the other is comments) that is hardcoded and not a view.

Views have configurable behavior to show show the entity in the best translation, or show the default translation.

You can replace this list with a view yourself, just create a view that lists terms on that path. Views doesn't support a few features of that UI however, specifically, that is the drag and drop hierarchy and weight handling. if you don't need that, fine. If you do, you might need to look for contrib modules that offer such features, I'm not sure if there are some for Drupal 8.