>> So thanks for reporting it, you can see an even more striking instance of this same bug if you draw a cylinder, rotate it around to an odd angle, then delete the planar end caps and draw a circle snapped on to the edge's center in that case. Since the closest point to the cylinder is way far off it is a more noticeable effect. It was kind of masked previously because it was handled fine if the cylinder caps were in place.

Ok, happy (if I can say) to find this one :)