If I create a new Category via Administration > Category Management > Create a New Category a Category URL Title gets auto entered as I type, just like when I create a new Entry. So far, so good.
But if I create a new Category in the ui-widget-overlay via Publish/Edit mode (the normal mode offered to my clients) no Category URL Title gets auto entered as I type. Presumably this is because the JS function doesn’t handle that context?
If I click Submit, the Category URL Title is automatically created at that point. In other words, the typical user gets no visibility of the Category URL Title that will be created until after it exists.
Can you confirm that this is the EllisLab expected behaviour?