So this problem has been around a while?
I can't say how long but I would bet my life that it has been more than a year.
I don't create any tournaments these days, but when I did I don't remember seeing this. Then again, I don't even know how I'd check???
Create a tournament to test it. I always create tournaments from the web site.
Click on "Advanced Options" for Conditions.
Change the "Hole Location" to whatever you like. Let's say you choose Easy.
Create the tournament.
Then, go to your Open Tournaments.
Find the tournament in the list and click on the grey down arrow tab to open up the details section for the tournament.
You're likely to see something like this:
The Hole Location ended up as "Hard" even though you chose "Easy".