Yes I have the same bug, it can be solved for now by changing the display setting in VW2017 from Best performace to Good performance and compatible. Please do a bug submit, as that will give tech support the necessary information in helping to track the cause of this.
If you do another operaton on the object, e.g. a fillet, then it gets properly displayed and then using the reshape tool works ok for that object. At least it does that with me.