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Preventing session timeout

Not sure if this is a bug or by design, but it’s damn annoying. Every so often, more so after updating the core, while in the admin section, I get booted out with the infamous “Your session has expired” message. Strange in itself since apparently WP doesn’t use sessions. The login prompt comes with a “remember me” checkbox, why isn’t it remembering? I guess there’s a distinction between “remember me” and “keep me logged in” here. I’ve disabled all plugins, deletes cookies, tried other browsers and even yelled at my screen, but I keep getting booted out.

Does WP set a no activity time limit in the admin section? Could somebody explain what exactly WP is doing to keep users logged in.