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The "with offers" (ad supported) version has no option to set power off to "never", and no book cover option for sleep and power off (the advertisements appear in place of the covers), so as you have a "special offers" unit, it's the purposed behavior. The firmware version is irrelevant.
However the hardware of the regular and "offers" readers are exactly the same, unless you sync the device via wifi or the desktop app, these limitations will not appear.
If you want to keep the option to set power off to "never", you have to avoid using wifi or connect to the desktop app. (now it's too late... factory reset and an another manual upgrade will be the cure)
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