Large language models (LLMs) and LLM-based coding agents are now used to generate code from natural-language specifications, yet ensuring such code is both functionally correct and secure remains a challenge. We present DualGauge, the first fully automated framework for jointly evaluating correctness and security of specification-only code generation, supported by DualGauge-Bench, a language-agnostic benchmark of 307 coding tasks each paired with functional and security tests derived from the same specification. Evaluating 10 representative LLMs across Python, C++, and JavaScript, we find that functional correctness substantially overestimates reliable code generation: even the strongest model remains below 15% joint security-functionality success in every language. Common model-side factors--scale, extended thinking, quantization, instruction tuning, and code specialization--do not reliably improve joint performance, suggesting secure-and-correct code generation does not simply emerge from stronger coding capability. Evaluation of 3 leading coding agents (Codex, OpenHands, and Claude Code) shows that iterative scaffolding is not a reliable remedy on specification-only tasks: results are strongly scaffold-dependent, with two of the three agents failing to outperform a comparable direct model. A qualitative audit reveals that these failures concentrate at the output contract boundary and in guards that exist but are insufficient--patterns that only joint benchmarking reliably exposes.

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