yes, I remember reading this somewhere recently. It might actually be next to the setting in your profile. The information is probably a recent addition.
Auto timeout in tournaments

You're right, it says it right there next to the box I checked. I feel kind of silly now.
I see the virtue of this for not holding up tournaments. But I wonder if it can be changed in the case of a final round between only two players.

I agree, it's quite annoying...
http://www.chess.com/forum/view/community/this-time-i-dont-want-to-win
I recently won two games by timeout even though I changed my settings to not automatically claim a win on timeout. The only special thing I can think of with these games is that they were part of a tournament. Are tournament games required to be claimed as timeout wins if one player's time expires?