As of now, the insert/wrap is fixed, but still the "talk" button obscures the last 2-3 characters of the text typed on the first line. This prompts me to stop and regroup, forgetting what the last letter I typed was, so I have to backspace, reorient, then look away and type blind.
Anyway, moving the "talk" button to the right out of the window (or shrink the chat line). Or, you could maybe make the chat box 3 lines thick and move the talk button to the lower right corner, as long as there is room above it for lines 1 & 2. It's line 3 that won't reach the end anyway. This latter solution would let you view lines 1 & 2 as you typed line 3 etc.
{Sorry, didn't know if you wanted this as new bug or comment/expansion on resolved bug.}