I think/hope there may be a bit of confusion going on with this part. I just tested on my own install, both with the current stable release as well as what will be 1.4.0.
Both times it does award the achievement + points after you hit the submit. However, the screen doesn't always reflect that right away, like with the green congrats bar. I was confirming that it was doing the actual awarding by observing the list of achievements we display in the user's admin profile. Something that is hidden to everyone but administrators, if I'm not mistaken.
If you want to try and recreate that as well, to see what I mean, take the following steps. If you have two browsers available, this will me really easy.
-Create a new user.
-Create an auto awarding submission achievement and some value of points.
-As your admin user, visit their user profile screen and scroll to the bottom
-Open a second browser and log in as the new user.
-In the second browser, navigate to the achievement page in question and upload a submission. Once done, don't do anything else, not even refresh.
-In your first browser, refresh the user profile page and scroll back to the bottom. You should see the achievement appear and the points added to their total.
-Smile knowing that there is no bug here and things are good to go.
-Drink coffee. :D