Built against master branch 801dd40666d1e6009920ad3ff755c7bb993b2a62:
If I have no wallet.dat file and run:
bitcoind -usehd=0
A new wallet.dat file is created and an HD seed is assigned.
I see an error message in the source:
"Error loading %s: You can't disable HD on an already existing HD wallet or create new non-HD wallets."
but that doesn't get shown because fFirstRun is true, and so the code which checks for -usehd values doesn't run.
If it's no longer possible to create non-HD wallets, specifying -usehd=0 when creating a wallet should be an error, and not get silently ignored.