Intelligent panel hide broken

I run all Xfce components from git and keep them updated. Starting having a strange problem since a week ago (?) or so and had some difficulty tracking it down. Basically, my setup is Panel-1 on top of window and Panel-2 on left side of desktop, intelligent hide enabled.

Problem: When I open the second of any existing window (xfce-terminal, thunar, firefox), panel 2 autohides even though the window is not near the panel (nor is any other window near the panel). Closing the second window makes the panel re-appear. Oddly enough, when I tested this with Panel-2 at the bottom of the screen the problem did not appear.

I have replicated this issue on a secondary clean system account and inside a VM.

Have been building/rebuilding xfce4-terminal, xfce4-panel, but once I took xfwm4 back a couple of weeks it returned to a working state. Did a git bisect and it identified the following as the problem commit:

ecabdea981f3ecf03f2f6b32b7887925456435d0 is the first bad commit
commit ecabdea981f3ecf03f2f6b32b7887925456435d0
Author: Olivier Fourdan <fourdan@xfce.org>
Date:   Fri Jun 12 17:30:27 2020 +0200

    client: Small cleanup
    
    Avoid setting the same flag twice in a row, we already set the
    CFG_REQUEST just a few line above.
    
    Signed-off-by: Olivier Fourdan <fourdan@xfce.org>

 src/client.c | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)```