Grace notes appearing above rests causing bad avoidance by slur

In the attached score observe in measure 3, the grace notes appear above the rest. As a result, the slur is avoiding the rest. This is obviously due to the crowded nature of the measure, but if you manually move the rest to the left (adjust the x offset to about -3.5) you will see that the slur no longer tries to avoid the rest. If the grace notes were after the rest like they should be, the avoidance would not happen. Another workaround is to move the rest in this example up 1 space so it would collide with the grace notes and everything else is laid out correctly.

If you move all of the grace notes in measure 3 down an octave, the grace notes will be moved to after the rest as is expected in the first place and none of the other issues occur.

I would consider this a corner case that does need to be addressed at some point.