SMTP MalformedEndpointException - invalid '@' in user name

When deploying a configuration/flow with smtp-endpoint a org.mule.api.endpoint.MalformedEndpointException is thrown.
Saying: "The endpoint "smtps://username@gmail.com:pwd@smtp.gmail.com:465" is malformed and cannot be parsed. If this is the name of a global endpoint, check the name is correct, that the endpoint exists, and that you are using the correct configuration (eg the "ref" attribute). Note that names on inbound and outbound endpoints cannot be used to send or receive messages; use a named global endpoint instead."

Solution is to replace '@' with url escape code '%40', but this should not be this way.
Bug seems to have been around for a while. This may not be a Mule Studio bug, but a Mule server bug??