Unfortunately I could not produce reported behavior. Even if the test is located in a test list or used as a step the Wait step property "Timeout" should be respected. I use latest at the moment version of the product 2017.3.1010.
Would you share more details on how to reproduce such problem on our end please? Is this element in a frame or you are accessing it trough the Pages? Please provide a screen-shot of the element and the step. Do you use "EnsureStateIsCurrent" enabled on the wait step?
Thank you in advance for providing the information.