I can confirm this bug. From my observation: it is not the fact that the target is off to the side. The problem appears to be that when you start following the target, if the target changes direction. Like they were going East when you started chasing but then turn north, then you will travel to the point at which they changed direction and then stop moving.
I've fixed the bug in the lua code and am sending it to them. When they fixed the sedna bug, they chose to use a different implementation than my bugfix, which is understandable since mine was not the most optimal. While in there, they "cleaned up" a bunch of other code. Unfortunately, they threw out some important code in the chasing routine during their "cleaning"