This is by design (not a glitch). The fact is that some users actually use this “untagged” section, so they can quickly find untagged images and tag them. So it can not be removed for all users. On the other hand we have not added setting to remove it, as there is literally hundredths of small things in the app that different users want to behave different and if we would add setting for each and every one it would become a mess. Maybe we could add a way to remove/hide it under the Tags section, but honestly no one has ever asked for anything like this, and we tend to first implement things that are asked by more users. I’ll put this on our todo list.
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