[Plugin: WordPress SEO by Yoast] Problem with the rel="next"

WordPress version: 3.4.2
WordPress SEO version: 1.2.8.4

I did this:

1. Updated to the latest version of WP SEO.
2. Under Sitewide Meta Settings, I checked the ‘Noindex subpages of archives’ box.
3. Cleared the Cache.

I expected the plugin to do this:

Not show ‘rel=”next” .. domain.com/page/2/

Instead it did this:

It shows the rel=next .. domain.com/page/2/ .. in the Head.

http://wordpress.org/extend/plugins/wordpress-seo/