Sure it does. All deleted records are returned as undeleted for all combinations of SET EXACT and SET ANSI which is expected behavior for SET DELTED OFF.

>I just tried it and it doesn't change anything. With EXACT ON (or ANSI ON) and using NOFILTER, I still get back the deleted record as a non-deleted record in the cursor. I appears to be EXACT and ANSI that are controlling whether or not the deleted record is brought back as a deleted record or as a non-deleted record.
>
>I wonder if it's just a bug. Hard to believe this is the intended behaviour - especially since the documentation seems to make no mention of it.