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Norton blocking system processes from moving files?

Hello, folks. I'm having some trouble understanding Norton's behavior, so I hope you guys can help.

Usually when downloading and running lesser known (yet reliable) executable files, I disable Norton temporarily to avoid false positives, sadly today I forgot. As expected, Download Insight blocked it claiming it's a WS.Reputation.1 (as usual). When this sort of thing happen, I often follow the same 'check history -> more options -> restore and exclude' steps to recover the file, however this time it wouldn't give me any option to "restore".

While trying to figure out why my file wasn't either on its download location nor Norton's "Quarentine" tab, I noticed the following security log:

Eh, so does this means Norton blocked Windows from moving my file to the quarantine folder? And since Windows couldn't move the file there, it's basically... gone?

That's not how it's supposed to work, is it? Is this a bug or is there some config I'm missing that allows Norton to erase files on its own?