This has happened to me on occasion. Civ 4's apparently coded that way to prevent settlers of one nation from being captured and used to settle by another civilization - that's the way it was explained to me in another thread.
The confusing issue to mean is remembering if earlier versions of Civ were different and I think some unpatched ones may have been (or still are?). It's difficult to recall which Civ version it was though.
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