I don't know if I would really call that a bug. First of all, it doesn't format your hard disk. It erases all the files on it (yeah, I know, small consolation there...). But it only does it when you tell it to do it. It pops up a dialog if the destination folder for your Nero Recode output is not empty, and asks if you want to delete all files in that folder.
If you pick the root folder, the dialog asks if you want to delete all files in that folder, and you say yes, what do you expect to happen? Of course it will delete all the files in that folder, which means it will delete all the files on the disk.
You can wipe out your hard drive using Windows explorer, too, but no one calls that a "bug".
Yes, it would be nice if they built in some extra protection that recognized when a user was about to do something stupid and asked "Are you really, really sure? This is going to wipe out a lot of stuff you may not have intended to wipe out." But people can not be completelyl protected from their own stupidity.
Back to the topic of this thread: I am not having any trouble with the new InfoTool either.