Tab calculation and drawing was recently rewritten as part of a refactor for text positioning to eliminate left-right jitter. See issue #22771 and PR #26105.
I believe these changes may also have had the effect of fixing this issue. I was not able to reproduce it.
Issue #18797 Cursor Placement Shell Transcript.txt
https://github.com/user-attachments/assets/28dd0aed-eeeb-44a4-9da8-5872bf75eb0b
Recommend this issue be closed.
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Thanks for checking this! Closing as it seems to work.
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