Vengeance fire conversion - bugged?

Is this bugged or do I misunderstand something?

Base physical damage converted to fire - yet it still scales with increased phys
Bleed from all sources converted to ignite - yet it still bleeds

Test setup is minimal, grey axe with bleed chance and belt with increased phys, tree impact none

https://imgur.com/t15pEIg
https://imgur.com/Xzb1bKZ
https://imgur.com/VHaCtWV
https://imgur.com/99NfTXY