Mate, you scared the living daylights out me
Not only was I seeing the same thing, but it was also happening in 2.3. I was tearing (what's left of) my hair out trying to figure out what was going on since Awasu never actually did anything wrt to configuring the proxy for the browser pane so I couldn't understand why it had suddenly stopped working. It took a stroke of inspired guesswork for me to realize what was going on
Awasu introduced a new option (apparently some time between 2.2 and 2.3

) to disable IE dialog boxes, typically complaining about JavaScript errors and the like, but also the one that asks you for your proxy details

If you turn these back on (Program Options, Display tab, click on the Properties button to the right of where it says "Internet Explorer" in the top-right corner, then untick <i>Disable dialog boxes</i>), IE will start asking for your proxy details again.
I can't believe no-one's reported this since 2.3 came out (April 2007!)

Thanks for letting us know.