This looks like a regex bug to me. If so, I'd like to request a prompt fix. If not, I'd like to understand why it now works as it does, and how I can get the new regex engine to do what I want.
Yes, this is a bug. What is weirder is it doesn't do it all the time.
Also, if you select a whole number of lines, some of which are blank, and replace ^ by anything, then the replacement is not made on each line following a blank line.
Also, if you select a whole number of lines that are followed by a blank line, and replace $ by anything, one too many replacements is made.
I've used TextPad as my programming editor for years, and block commenting has become automatic: select block, hit alt-\. Done.
Now, select block and alt-\ has become select block and alt-\-o-crap-rightarrow-rightarrow-delete, and it is driving me bonkers.
So far as I'm concerned, this bug by itself makes TP7 unusable. (The fact that it can't seem to remember my workspace and always opens without it is just crap on the cake.)
I'm at the point of "down"grading to TP 6. Or even to TP 5, which has just worked for me for so long.