If the "move to top of list on connect" feature is enabled, the server is moved to the top of the list regardless of whether a successful connection is made or not. This also updates the "recent" list in servers.ini which affects the "Recent Servers" list in the Connect menu. These are all part of the same feature. The "move to top of list on connect" was actually added long before the other two features - it should probably be renamed "Maintain recent servers list".