The Omnibox is the primary security-relevant display surface for the browser, and it is working correctly in this scenario.

UIs that ask users to make a security decision should be using the appropriate FormatURLForSecurityDisplay APIs, but other surfaces (like the configuration box that allows the user to set a homepage) can use their discretion when deciding how to represent international domain names.

Unable to reproduce the issue on Win-10 using chrome reported version #61.0.3163.91 and latest canary #63.0.3220.0.

Attached a screen cast for reference.

Following are the steps followed to reproduce the issue.
------------
1. Launched chrome browser and navigated to chrome://settings
2. Enabled the home button and made custom web address as home page button  with IDN http://ebаy.com/.
3. Clicked the cursor out of that custom web address field and observed that punycode was displayed as http://xn--eby-7cd.com/ instead of http://ebаy.com/ when setting home page button.
Note: But punycode was displayed as http://xn--eby-7cd.com/ only for the first time. If custom web address field is replaced with http://ebаy.com/ and cursor is clicked out of that custom web address field, then it remain as http://ebаy.com/ and doesn't change to http://xn--eby-7cd.com/

akashc99@ - Could you please verify the screen cast and please let us know if any thing missed from our side.

Thanks...!!

Deleted: 766935.mp4 1.7 MB

	766935.mp4 1.7 MB View Download

Hello,

i think issue is patched in #63.0.3220.0.

Regards,
Akash.c

Thank you for providing more feedback. Adding requester "krajshree@chromium.org" to the cc list and removing "Needs-Feedback" label.

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

Marking the issue as Won't Fix as per Comment#3.
Please feel free to raise a new bug if the issue is again seen.
Thank You.