I can confirm the issue you've outlined on latest 'main'.
To me it looks like the problem is in `org-inline-hide-tasks'.
I don't use inline tasks, so I'm not sure what the exact expected 
behavior is,
but that function uses a `while' during `org-cycle-hook' to 
iterate through all of the headings.
My intuition is that it's overshooting a boundary and toggling 
visibility on more than it should.

Does the attached patch behave more in line with what you expect?