SharePoint 2013 with Office Web App 2013 - allow management of content type

Hi,

I've configured Office Web App 2013 with SharePoint 2013 and everything is working fine. When I click new document in document library, I can see flyout menu of "Word, Excel, Power etc" and can create/edit documents. However, when I go the library settings and change "Allow Management of Content Type" to true and then click the new document link in the document library, I get upload file option. I'm not sure if this is as designed or I've misconfigured something. Have anyone noticed this?

Thanks,
Sohel Rana
http://ranaictiu-technicalblog.blogspot.com