Users can take issue with intended behavior, as in this case. This resolves that issue, despite the old behavior working as (previously) intended. “An issue (as perceived by a user)” is not equivalent to a bug.
>> As you can see, Notepad is incorrectly displaying the file’s contents, making the file look garbled.
> So the intended behavior was to incorrectly display the file contents?
I would argue that you're getting hung up on the author's lack of precision. Does the file look garbled in that screenshot? Sure, I think that's a reasonable interpretation of things. Is it incorrect? That depends on what Notepad was intended to be used for. I suspect Notepad was intended from day one to be a simple means of read and editing "plain text" files written on Windows, and under that premise Notepad has always functioned perfectly.
To the author's credit, belaboring the distinction between incorrect behavior (a property of the object with respect to the intentions of its creator) and undesired behavior (an attribution given by a user with respect to their needs) would make for boring reading.
> Also, I don't know why you quoted "An issue (as perceived by a user)", since I can't find that in the article anywhere.
Quotes are not solely used for citation. They are also used for emphasis or indirection. You can also use quotes to set off something that someone explicitly did not say as a way of indicating a paraphrasing.