I think this is a regression.

workspace settings:

    "files.autoSave": "afterDelay",
    "files.trimTrailingWhitespace": true,
    "editor.renderWhitespace": "all"

• open file A.ts side-by-side with itself
• reload workbench
• focus on the right hand side and type two spaces => cursor doesn't jump
• focus on the left hand side and type two spaces on a different line => cursor doesn't jump
• focus on the right hand side and type two spaces => cursor jumps
• Note: sometimes reproduces right away
  

Please let me know if you think this is something on my side, but I think this was implemented initially to work in these cases.