Canceling the "Add Guest" dialog bypasses the Xbox guest account settings

I have setup my Xbox so that adding guest accounts requires a password to keep my kids from bypassing their daily play time limits. However, in Minecraft they are easily able to add guests anyway:

1. Log in as any user and start playing
2. Turn on the second controller, press the menu button to join
3. In the Xbox user selection menu, select "Add guest"
4. When the password prompt appears, cancel out
5. The game just adds a guest anyway