Ok, ok, I didn't want to force you to provide a new official release
with this fix. It was only, because I normally reluctantly use any
prerelease versions for working. But now I did it to be able to give you
feedback.
Short answer: Yes, the issue is fixed in this version!
Long answer: Before installing the prerelease I verified, that Windows
transfers the focus to some element of the local window, when pressing
F10 (which I could not notice in fullscreen mode). More precisely, when
pressing F10 without fullscreen mode, the first reaction happened inside
the TVNC session. But directly after this reaction pressing a key like
cursor-down was handled by the Windows system menu normally accessed
through the icon in the upper left window corner. So, yes, I could
reproduce, what you detected. After installing TurboVNC 3.1.1 (the
prerelease) this behaviour is gone. Each pressing of F10 (or
cursor-down) leads to an expected reaction inside the TVNC session. So I
now think of keeping this version, until you publish a new official
release. And no, I don't want to force you to do this soon. Sorry for
this misunderstanding!