Too Many Permissions Stripped In 1.7.35?

[Bryan Berns <bryan dot berns at gmail dot com>]

I honestly haven't read up exactly how Cygwin interprets NTFS
ACL/ACEs, but I remember seeing on the mailing list that a change was
made in 1.7.35 was made to permission handling.  It is preferable in
my organization that the SYSTEM account always have full control the
local file system.  When using chmod under 1.7.35, it looks like
permissions for SYSTEM get stripped (as well as some others).  Is this
the desired behavior?  If so, I'll workaround it somehow but just
wanted to verify before we release this much anticipated Active
Directory optimized version.  For context, I'm running as the default
Domain Administrator on a fresh install of Windows 8.1.

@@@@@@ Testing With 1.7.34 @@@@@@

$ uname -a
CYGWIN_NT-6.3 BERNS-WINDOWS 1.7.34(0.285/5/3) 2015-02-04 12:14 x86_64 Cygwin

$ mkdir TEST-34

$ chmod 750 TEST-34

$ icacls TEST-34
TEST-34 DOMAIN\Administrator:(F)
        DOMAIN\Domain Users:(RX)
        Everyone:(Rc,S,RA)
        BUILTIN\Administrators:(OI)(CI)(F)
        NT AUTHORITY\SYSTEM:(OI)(CI)(F)
        BUILTIN\Users:(OI)(CI)(RX)
        NT AUTHORITY\Authenticated Users:(M)
        NT AUTHORITY\Authenticated Users:(OI)(CI)(IO)(M)
        CREATOR OWNER:(OI)(CI)(IO)(F)
        CREATOR GROUP:(OI)(CI)(IO)(RX)
        Everyone:(OI)(CI)(IO)(RX)
Successfully processed 1 files; Failed processing 0 files

@@@@@@ Testing With 1.7.35 @@@@@@

$ uname -a
CYGWIN_NT-6.3 BERNS-WINDOWS 1.7.35(0.286/5/3) 2015-02-25 13:13 x86_64 Cygwin

$ mkdir TEST-35

$ chmod 750 TEST-35

$ icacls TEST-35
TEST-35 DOMAIN\Administrator:(F)
        DOMAIN\Domain Users:(RX)
        Everyone:(Rc,S,RA)
        BUILTIN\Administrators:(OI)(CI)(RX)
        NT AUTHORITY\SYSTEM:(OI)(CI)(RX)
        BUILTIN\Users:(OI)(CI)(RX)
        NT AUTHORITY\Authenticated Users:(RX)
        NT AUTHORITY\Authenticated Users:(OI)(CI)(IO)
        CREATOR OWNER:(OI)(CI)(IO)(RX)
        CREATOR GROUP:(OI)(CI)(IO)(RX)
        Everyone:(OI)(CI)(IO)(RX)
Successfully processed 1 files; Failed processing 0 files

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