Does this issue occur when all extensions are disabled?: Yes/No

• VS Code Version: 1.106.3
• OS Version: Mac OS 15.7.2

Steps to Reproduce:

1. Have NES suggestion that is replacing exactly one next character with some text. For example

const myVar = "hel"
                  ^---cursor here before "
suggestion to replace `"` with `lo";`

2. Start typing this suggestion, in the example above type l.

Expectation:

1. Edit suggestion is reused and is correctly rendered

Reality:

1. Edit suggestion is rendered incorrectly

See #281519 for test case.