It appears to be using a heuristic to update the PDF directly when you type, and then it periodically runs LaTeX to do global layout. Try putting the cursor bef

It appears to be using a heuristic to update the PDF directly when you type, and then it periodically runs LaTeX to do global layout. Try putting the cursor before \LaTeX in the example document and input a few spaces. For me, it shifted the first characters into the later ones, perhaps because their heuristic couldn't detect that they are on the same line due to the vertical offset.