Bleeding while "Unaffected by bleeding" weirdness...

I have "Unaffected by bleeding while affected by Malevolence" mod on Watcher's Eye.
I have Malevolence aura at all times.
But while I was running map with "vulnerability" mod (which has a chance for bleed to be applied by hit) I've noticed bleeding icon on top.
What's up with that?

Does vulnerability overrides my unaffectedness somehow? (extremely unintuitive, if that's the case.)
Or does the icon comes up, but acutal debuff doesn't? (then it's kinda missleading.)
Or does the debuff actually being applied even though it shouldn't? (then it's straightforward buggy.)

I can't really say if I was losing HP (ES actually) or not because of my regen. But there was an icon and I've heard the sound of bleeding, so now I would like to know what's going on there...

This is the correct behaviour. "Unaffected by X" means that X can still be inflicted on you, but will do nothing. "Immune to X" would mean that X cannot be inflicted on you in the first place.

EDIT: By the way, this is actually an important distinction, as "unaffected by" will let you use items that require a debuff on you without actually suffering negative effects from that debuff. E.g. "Unaffected by bleeding" with The Red Trail allows you to benefit from the frenzy charge on hit without having to mitigate bleed damage.

Got it.

As a counterpoint to the above, I wear Craiceann's Carapace, which specifically says, "Bleeding cannot be inflicted on you," so I don't get any of the visual or audio effects of the debuff at all, let alone the life drain.

But it means that I can't use any effects from items that would only work if I were under the influence of bleeding, even if it didn't actually hurt me.

In short, neither of us will take any damage from bleeding, but while you would still get the increased armour from The Golden Rule, I would not.