I did not assume this was a bug. I usually assume (by experience) that I'm the cause of the problem

I'm not too deep into all this UBB Threads and MySQL stuff.
I don't recall reading something about the dependency between UBB and the settings for the full text index in MySQL in the Administrator Guide. I may have overlooked that.
A hint next to the setting in the UBB control panel (e.g.
"Also check the ft_min_word_len in your MySQL server") would have been helpful in this case.
Anyway, after following the instructions on the MySQL site and re-creating the index for the ubbt_posts table the search now finds three letter words too. Great.
Thanks to all posters
The minimum setting of "2" in the Control Panel was just a test.