Animation Rotation changes object rotation in scene after stopping animation recording

I'm having bug when I do object rotation for animation and I stop recording animation, object rotation remains same in scene as I have recorded it for animation.
Before this bug appeared object rotation remained untouched in scene after stoping recording animation.

Also when I press ctrl+z while recording animation, rotation won't return to previous state, it just deletes keyframe and remains with same rotation (When there are no other keyframes in animation)

I have installed 5.3.5.p5 personal, but same issue is experiencing my friend with unity 5.3.5.f.1.
Changing rotation interpolation has no effect.

Here is video example - https://gyazo.com/6dea25cea8d7b0ae7b511ba29f49088e

Any ideas what's wrong and how to fix it? As it sometimes is frustating when Object rotation changes in scene.