This is intended behavior. 
Do you have observations the device did the opposite before?

Thanks Kalin. 

This looks bad from usability point of view. I also verified that this is similar behavior in M65 and M66 as well. Thus it is not a regression nor a bug. 

Any priorities if we propose a new solution for this feature? or Do we have any already? It will definitely be good if the chrome book goes into sleep mode rather than rebooting. This feature is a very common in other OS as well. 

Kindly share your thoughts.

Re: > This looks bad from usability point of view.
Can you define "looks bad"? What is the use case you have that involves sign-in screen and closing the lid?

Thanks for the feedback, we'll take a look at it. Closing as WAI for now.

I can't think of any reason to suspend here. Suspending saves the system's state so it can be restored later, but it consumes more power. There's no state to save when the user hasn't logged in, so there's no reason to waste power by suspending instead of shutting down.

Why do you think the current behavior is bad in terms of usability?

I can think of waiting for boot time(~10 sec) if user decided to open the lid in few seconds since the lid_close has occurred i.e. the lid was closed unintentionally. A shutdown delay might be somewhat useful in this case.

The risk if we wait a bit after the user closes the lid before shutting down is that they'll be more likely to reopen it while we're in the middle of shutting down, which leads to a very poor user experience (the system stays off until they press the power button on most or all devices, I believe). If we shut down immediately, I suspect that that's less likely to happen (because it's probably uncommon for users to close and immediately reopen the lid).