It does the same in VFP6 also. As workaround you can SET FILTER on the report's cursor/table before running report

Select crsReport
SET FILTER TO < condition >
REPORT FORM myreport RANGE 2 PROMPT

Or you can run additional select to filter records.

>I have found that REPORT command ignores range clause if FOR clause is also
>present.
>How to fix this bug?
>
>Steps to reproduce: the following program prints all pages.
>
>

>CREATE CURSOR test ( test c(20) )
>FOR i=1 TO 150
>INSERT INTO test VALUES ( 'line '+TRANSFORM(i) )
>ENDFOR
>CREATE REPORT test FROM test
>* result: all pages is printed
>REPORT FORM test FOR .t. RANGE 2 TO PRINTER PROMPT
>