I don't know if this is a bug or a feature that I don't understand. I think it is a bug.
On the page of the Admin interface that displays TV Shows from the library there is a drop-list for selecting a filter. Most of the filters work in a manner I understand, but the "Watched" and "Unwatched" filters are an exception. They seem to have some effect on the order in which shows are displayed, but don't seem to actually filter-out any shows. I would expect that if you choose "Watched" it would list only shows with one or more watched episodes. Similarly, I would expect "Unwatched" to list only shows with one or more unwatched episodes.
