>>>>>I think this is by design. Try

? TRANSFORM(10.2) && Displays 10.2
>>>>>? TRANSFORM(10.20) && Displays 10.20
>>>>>SET DECIMALS TO 1
>>>>>? TRANSFORM(10.20) && Displays 10.20

>>>>
>>>>
>>>>It's not by design because it doesn't work this way in VFP 6. Try in VFP 6.

? TRANSFORM(10.2) && Displays 10.2
>>>>? TRANSFORM(10.20) && Displays 10.2
>>>>SET DECIMALS TO 1
>>>>? TRANSFORM(10.20) && Displays 10.2

The VFP 6/7 help also states that "Trailing zeros are removed from the decimal portion of a numeric value".
>>>
>>>What I'm saying, Sergey, is that the change was by design in 7.0. What it did in 6.0 is different.
>>
>>Where this change to design is documented?
>
>It isn't. However, it is so different than the previous behavior, that I would have to presume it was done by design. I'll have to check my home box to see if the behavior was the same as 6.0's since I don't have access to 7.0 without SP1 here.

I don't think your argument is valid because it doesn't matter how dramatic change in behavior is. What is matter if it was intended change or not. That's why I still belive it's a bug.