This is intended. However, it’s kind of buggy because often the crafted gear stays on after you’re not doing professions. It doesn’t automatically reset all the time; I think that is how it is supposed to work. It will reset after logging off and logging back in.
The problem is it is resetting back to showing it even though it has been set to hide it with the npc. That is it in a nutshell. I cannot imagine their intent is for you to revisit the npc every time you log in but I didn’t realize its a buff. So I can just unclick it for now. Maybe they will get to this eventually.
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Make sure to report the bug whether with the link Kyzera provided or using the in-game bug report tool (Escape key → Support → Submit feedback or bug report). That way it should get on their radar to get fixed. 
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