EDIT:
Oh, you are right, if you move the Mouse Cursor far enough, it doesn’t work anymore (not even in 4.3). But you do need to Move the Mouse a lot further, when holding SHIFT, in order to get Objects to Snap to the wrong Target…
Maybe file a bug report? (I haven’t checked yet, if this already has been reported.)
It might have to do with rounding errors (Cursor ‘wrapping around’) and then maybe it won’t be fixable, but who knows?