These are only the items I have found so far. I have checked all my settings and nothing has changed except the revision of the release to 1.56 to 1.7.0. Both of them have issues still. I will be going back to 1.4 release as I never had an issue with anything. Please let me know if you find a resolution.
Thank you.
That offset behavior will happen when offsetting very small curved objects — and the circle in the original screenshot looks very small based on the measurements showing on the screen.
It will be more or less pronounced depending on whether you have a high or low Curve Tolerance set in your preferences (Edit > Settings > File Settings > Curve Tolerance is at the bottom). The Offset preview will also look more jagged than the finished result in most cases, especially if you select Optimize/Simplify results.