Hi Kevin, thanks for reporting this bug - I get the same result in the prior Mar-24 V3 beta and in V2 as well so it does not seem to be a newly introduced bug at least...

It seems to have something to do with the cylinder seam edge just barely grazing right along the bottom plane of the other object. If you rotate the cylinder by 90 degrees so the seam is in some other spot like the attached version it should then work ok.

I'll put this on my list of things to investigate but since it's not a recent regression it's not likely something that I'd be able to fix for v3 since messing around with intersection mechanisms is a sensitive area and it's quite easy to introduce problems in other cases when tweaking things.

- Michael