New Finder bug in 10.7.2 - overwriting file w/authenticated move fails and zeroes out target file too

I have found a new bug in the Finder for Lion 10.7.2

In 10.7 and 10.7.1, if I downloaded a new version of an application, and wanted to drag it to /Applications or /Applications/Utilities, here is what happened:

1) Try to drag to one of these protected directories, in order to copy it over the old version.

2) Get a dialog box saying "The item XXX could not be moved because "Utilities" couldn't be modified." This dialog would have two choices: "Authenticate" or "Cancel"

3) Click "Authenticate"

4) Get another dialog: "An older item named XXX already exists in this location. Do you want to replace it with the newer one you're moving?" Choices would be "Keep Both Files" "Stop" and "Replace"

5) On clicking "Replace", the OS would ask for an admin password.

6) You would give it, and then the OS would copy the new file. Done.

Now, in Lion 10.7.2's Finder, after steps 1-5, there is a new dialog:

"This operation couldn't be completed because some files had to be skipped. For each item, chose File > Get Info, make sure "Locked" is deselected, and then check the Sharing and Permissions section. When you are sure the items are unlocked and not designated as Read Only or No Access, try again."

"OK is the only choice to exit this dialog.

AND

the target file is in fact overwritten with an empty file! So your folder now contains a nonfunctional app, while the new version can't be copied over it!

You can, in fact, go in and delete the zeroed-out app and drag the new copy into the folder. But authenticated overwriting appears dangerously broken.

(And what an error message! Sounds like someone from the Windows 2000 team thought that one up...")

I'm not a developer, but if any registered developers would care to replicate this and file it as a bug, I'd be very grateful.