Bar none.
As a SLF and non aviator I find all the previous posts quite alarming.
There seems to be a discussion about what to do in a given set of circumstances. I would expect everybody to agree as to what the correct course of action should be. The fact that there are many differing opinions i find quite disconcerting.
You have reason to be slightly alarmed. And I will try to explain why this has come about.
The B737 was not designed. It was a B707, a B 727, a B737 Classic, and then a B737 NG, with hundreds of modern sticking-plasters patching up the system-gaps. And so the systems do not talk to each other, and nor is there any rhyme or reason to the systems and the cockpit ergonomics. It is a design by several committees, over three human generations of designers and engineers, all doing something different.
To compound the issue many airlines (Fly Dubai?) lease aircraft that have come from many different previous operators, and so each aircraft will have a different system and do something different. Our fleet has a subsection in the flight manual for each aircraft and for each system, detailing the many differences between all the aircraft in the fleet. So you have no idea what each aircraft will do next.
The manuals are written by administrators, not engineers, and they do not always know what they are talking about. And they also simplify things for the pilots, which sometimes distorts the truth. An example is the Classic fuel schematic, which shows the center fuel pumps in the center tank, because that seems more logical. But they were not, they were in the wing tank, and that made a big difference. (The NG now has the pumps in the center tank, which is why it has all those fuel pump problems and fake solutions to the problem.)
And to nail my views to the door of the cathedral (as it were), nowhere does it say in my manual that WS system disables the altitude capture. And why should it? You are supposed to dial in the MA altitude, which should take MSA into account. And you don't want to fly up into an upper airway that might be very busy, so why bust that preset altitude? I have done this several times, and I am sure on each occasion altitude was captured.