It seems that the login module looks at the smf session to determine if a user is logged in. Joomla uses a different method to timeout this session length compared to smf.
So after 15 minutes a user is still logged into smf but joomla has logged them out. The module is showing the smf login so it confuses users. I think the solution is to increase the session login time in joomla and make sure the 'always logged in' checkbox is selected.
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