OS X "Continue Playback" does not work

For Mac OSX 10.6.7, vlc 2.2.0.

Both the default ("Ask") and "Always" behave the same as "Never". The appropriate preference setting is saved in in vlc's vlcrc file. It just doesn't seem to have any effect (which I assume is what "never" would do).

I am assuming the proper behavior is to put up a dialog when I select (or double click) a video file to be played. If so, I never see any dialog. Videos always play from their beginning.