Yeah thats for a sure a bug, with that gateway and netmask you have an IP range of 10.0.0.1 - 10.0.3.254
Apparently it is just going to the highest /24 range and thinking you need to be in there.
You would have to use the endpoint listed above to force it in there. Somewhere in another thread I posted an example of how to build the query string for that endpoint...
Static IP Address and DHCP Support for non /24 Subnets - #13 by gopher.ny
/hub/advanced/switchToStaticIp - accepts the following query string parameters
address
netmask <- use 255.255.254.0 for /23 subnet.
gateway
nameserver