Maybe we are expecting something that is not really supposed to work this way.
I would expect that in edit mode it would rotate the active vertex in your screenshot example to «point» to the vertex you select on the cube but it does not (at least not exactly sometimes it does approximate).
I think that the problem is that we are trying to align to the rotation of a vertex, not point to it. I have found a way to do do this via triangulation, using three viewpoints - front side and top. In this video I have put a flag on the end for clarity. I also extruded a vertex to the cube, just to make sure it does line up.
Was this what you are trying to achieve ? This does seem a little complicated for a simple operation!
I have to admit that I usually only use snap to move vertexes and I am not an expert, I am also learning from this question. There could be an easier way to do it.
Maybe this would be more a feature request than a bug, I do not know how this worked in 2.69 so I am not sure.
Align rotation to target is more useful to align for example an object to a slanted face as in this video: