Hi! this is not strictly speaking a bug, but is an inconsistency.
when i run wget -x http://some.host/path%20to%20file/file%20name.html wget saves the result in "some.host/path%20to%20file/file name.html" i.e. it decodes %-characters in filename, but not in directory name(s). since these escape sequences are only meaningful in the URL but not in the file names on the local filesystem, it would be more consistent to decode all characters in paths too. Best, v.