Events automatically created from 12:00 AM -12:00PM

This is not a bug. This event ("Event 11") is generated in Demo/App_Code/DataGenerator.cs:

dr = dt.NewRow();
dr["id"] = 11;
dr["start"] = Convert.ToDateTime("00:00").AddDays(8);
dr["end"] = Convert.ToDateTime("00:00").AddDays(15);
dr["name"] = "Event 11";
dr["column"] = "D";
dt.Rows.Add(dr);

It's an event that takes 7 days and by default it's rendered as 7 pieces (event parts), one in each day. It can be also moved to the all-day area by adding:

dr["allday"] = true;