This issue still exists in v7.38. I have observed it while using Fixedsys and Fixedsys Excelsior fonts.

//echo -a $chr(29) $+ abc $+ $chr(3) $+ 4d $+ $chr(3) $+ 12e $+ $chr(3) $+ 7f $+ $chr(3) $+ 13g $+ $chr(3) $+ hij

Outputs:
abc d e f g hij


Well. At least I won lunch.
Good philosophy, see good in bad, I like!