FitCrv Degree 1 Input Bug?

Why does the degree 3 output curve from FitCrv always have only 4 control points, regardless of the tolerance setting in the command? Is this the intended result. Example attached.

CrvFit Tolerance Example.3dm (125.9 KB)

I think maybe you want the RebuildCrvNonUniform command to smooth out those faceted curves. Play with the point count and tolerance to get the curve you like.