Hi,
Indeed, I was able to replicate this issue, it must be new as it was working all right until recently. I have made a issue request on the bug tracker, this will be resolved within the upcoming release next week.
Luckily it’s a very tiny problem, the timing of the “clear” function seems to be at the wrong position, it should happen after each keystroke, but somehow it’s mitigated to after the search is finished, which causes the jumbled overlay.