Auto dismantle just dismantled every piece of relic looted from boss.
This has not happened before. I have it set to Legendary or below. I have never had it dismantle relic pieces before and triple checked the settings had not changed before posting.
Elegant Stone of Soaring. Corrupted Time Earrings. Corrupted Time Ring. Stone of Chaos kept only.
I can confirm this is happening. I shouldn’t have expected the system to work properly. so nerf chaos loot and then the auto dismantle destroys relics. I do not have stats checked so it shouldn’t override the legendary setting anyway
U Guys should look what u have checked below - it clearly says that, if this Bonuses are checked, it is going to dismantle REGARDLESS of RANK 
I have had to manual dimantle every piece of Relic gear up until now. But thanks for your friendly input.
I will test on an alt your theory though.