A user's home directory contains both ~/.bash_profile and ~/.profile. Settings added to ~/.profile have no effect when the user logs in at a console. What explains this?

LPIC-1 Exam 102-500, objective 105. Shells and shell scripting medium

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The options

Correct A login shell reads only the first of ~/.bash_profile, ~/.bash_login and ~/.profile that exists, so ~/.bash_profile wins and ~/.profile is never read

Correct. Bash stops after the first of those three files it finds, in exactly that order. With ~/.bash_profile present, the other two are ignored.

Not correct ~/.profile is only for the Bourne shell and bash never reads it under any circumstances

Wrong. Bash reads ~/.profile happily, but only when neither ~/.bash_profile nor ~/.bash_login exists. That fallback is what makes a single ~/.profile work for both sh and bash.

Not correct Both files are read, but ~/.bash_profile is read last and overwrites the settings

Wrong. Only one of the three is read at all. If both were read, appending rather than overwriting values in ~/.profile would fix the problem, and it does not.

Not correct ~/.profile is read only by non-login interactive shells, which a console login is not

Wrong. The file read by interactive non-login shells is ~/.bashrc. None of the profile files is consulted for a non-login shell.

Why

For an interactive login shell bash reads /etc/profile, then the first readable file among ~/.bash_profile, ~/.bash_login and ~/.profile, and stops there. That ordering is the reason many distributions ship only ~/.profile: adding a ~/.bash_profile silently disables it. The usual fix is to make the file that does get read source the other one, or to keep all shell settings in ~/.bashrc and source ~/.bashrc from the profile.

Where this comes from

Cited
manual page bash(1)

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