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I just tried it on my Voyage, and after I open a book it becomes the first item in the list. I'm currently on the most recent FW - V5.9.2.0.1. I don't recall seeing that option behave differently in previous versions.
You mentioned that you recently purchased the PW3, so I assume you've recently loaded it up with your library. I've seen in other threads where some weirdness can happen sometimes after you load a large number of books all at once, specifically around indexing. You might try rebooting the device and see if it helps.
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