It's actually patch 7.4.467 that causes this.
Here is a patch that resets the linebreak setting in a few more places
in do_pending_operator so that whenever for the change, replace and
insert/append operations, linebreak will be set to its original value
(while still keeping the fix for 7.4.467).
That should also prevent the redrawing issues, that caused the cursor
position to be wrong.
Best,
Christian
--
F: Woran erkennt man, daß ein Politiker lügt?
A: Wenn sich seine Lippen bewegen.