Hmm. Will check that on the last two releases now...
Edit: Saw it... also very glad they fixed it. Like the teleporting raccoon in Bambi, once you see it, you can never un-see it.
It sure doesn't look like it was the animators intent. If it wasn't fixed in the Diamond Edition, it's because no one who worked on the film was involved in the restoration and the error has been forgotten.
I'm just waiting for the wonderful people at the Blu-ray.com to put out comparison screenshots of all the releases.