I can't seem to reproduce the issue here with artwork I create. Is it possible to send me (privately) a shared link to the file that we can try to diagnose here? Thanks.
Thanks for sending the file. I'm able to repro now with a simpler version of the specific shadow artwork file.
The workaround is to either increase Mesh Expansion or just switch Mesh Shape from Auto to Rectangle. Open the "shado" puppet in the Puppet panel, then set Mesh Shape to Rectangle in the Properties panel. Hope this helps.
We have a task to investigate ways to improve this behavior. Thanks for posting about this issue.