So your account is configured to no show any of your friends on your
profile to anybody (including your own friends). Yet when you create a fresh account and add yourself as friend on that dummy account it will show several of your friends as suggestions to the dummy account?
I guess it is because of the privacy settings of your friends. Go to the profile pages of people suggested to the dummy account. Chance is you will show up on their profile as one of their friends. Only way to prevent that would be to ask all your contacts to hide their friend lists. Or complain to the Windows Live Profiles team:
http://windowslivehelp.com/product.aspx?productid=13. You have a point.
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