Blogroll Option conflicts with wp_create_nav_menu

I am using wp_create_nav_menu() to create menus under the wpmu_new_blog action. If the Default Link Category: option is not blank the first menu created takes the name from Default Link Category:. Subsequent menus create with the correct names.

If Default Link Category: is blank then the first menu is created with the correct name.

http://wordpress.org/extend/plugins/wpmu-new-blog-defaults/