I don't think it does this. Specifically:
bzr init yyyy cd yyyy bzr info
Standalone tree (format: pack-0.92) Location: branch root: .
For comparison: bzr init-repo repo cd repo bzr init bzr info
Repository tree (format: pack-0.92) Location: shared repository: . repository branch: .
So this only happens when you actually have a shared repository and a branch at its root.
I don't think it does this. Specifically:
bzr init yyyy
cd yyyy
bzr info
Standalone tree (format: pack-0.92)
Location:
branch root: .
For comparison:
bzr init-repo repo
cd repo
bzr init
bzr info
Repository tree (format: pack-0.92)
Location:
shared repository: .
repository branch: .
So this only happens when you actually have a shared repository and a branch at its root.