Steps to reproduce the issue

1. Clean installation of Joomla 3.3.6 using the "learn Joomla" example content with no third party extensions.
2. Assign Beez3 as default template
3. Create an alternative layout in /templates/beez3/html/mod_login/[newlayoutname].php (I made an exact copy of the default.php layout)
4. In the administrator module manager, Open the login module in position7
5. In advanced properties select the alternative layout and save
6. Go to the front end of the site and login using the module.

Expected result

The expected result should be identical to the default layout for this module. After logging in you should see the standard "hello username" with a logout button.

Actual result

The actual result is that the login module displays as if you haven't logged in. It shows the username and password fields with login button. Also the alternative layout doesn't appear to be used at all. The "default" still seems to be used. Making minor changes to the alternative layout php code never appears in the module.

System information (as much as possible)

Latest version of joomla (3.3.6)
Only core joomla from a standard installation and using the "learn joomla" sample content installation.

Additional comments

I followed the instructions for creating a module alternative layout from this link:

Joomla Module Alternative Layout instructions

For my specific site that started my research, I had upgraded a J25 site that used a mod_login alternative layout that worked exactly as expected.

Once it was successfully migrated to j3 everything worked perfectly except for the alternative layout for mod_login. To make sure it wasn't a "bad migration" I installed a clean fresh core joomla 3.3.6 to test it out. I have not tested other module alternative layouts, only the mod_login as it was the only one I needed.

In addition to the alternative layout not working, from that same link adding a language override to change the name of the alternative layout in the administrator drop down selection also does not work.