How the game is patched can make a big difference to some of these bugs.
In past expereince, I've seen bugs in the early versions continue into later versions, but those who installed the later versions instead of upgrading from the original using all the patches, didnt have have the same problems.
In this case, it could be that upgrading each patch, doesnt actually fix the issue, where going disc version straight to 1.05 does work. That would account for why I havent seen it, since thats what I did.
I've seen an example in another game, where the devs claimed that they had fixed a problem with a patch, and yet the problem remained. But when I uninstalled the patch, things actually improved dramatically. Which led me to suspect, that the patch should have deleted the existing code and installed the new code, and because it wasnt deleted, something of the original problem still existed and was sabotaging the patch. These things happen.
As a game gets older and more patched, sometimes its best to reinstall it from scratch, and patch to the latest version, bypassing all other patches.