I've removed the normal Setup Types, and made two new ones.
Now when I run the Define Wizard Dialog: Select Setup Types it display three options, my two and one blank. When I only create two types, this menu should only display two types.

Next bug is that if I enter the script editor and enter Details on one of the setup types. If I just click OK I get the following message:
"Cannot rename ......: A setup type with the name you specified already exists. Specify a different setup type name."