I'm currently playing with non-Steam SH5 1.2.0 + TWoS. No trace of this bug, or any other bug btw.
If I unload TWoS from JSGME I could play the stock game at its best state which is v.1.2.0 + TDW Generic Patcher enabled.
I don't know about the Steam version (and I don't regret), which version of SH5 is the Steam game? If its' below 1.2.0 then it should be patched urgently before signaling any bugs.
You can see which version you have in the main menu, I think. If it's below 1.2.0 be prepared to have a lot of trouble with the game, not just TC...
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