Create a Rectangle Path with radius, apply a subtract(anyShape, { insert: false, trace: false }) to the bottom left edge.
It doesn't work with normal rectangle too. It appens with when you subtract a shape to the bottom left corner.
The path doesn't subtract well. It cut the path in intersections but doesn't remove it.

It should remove the path under the subtrahend shape:

PaperJS V 0.12.3
Hey, we found a weird thing that fixes the bug. If you split the base shape, this doesn't happen:
path.splitAt(0);
Then the path is opened. This should be related to this.
Here is the sketch from the original issue with the quick fix

Most helpful comment
Hey, we found a weird thing that fixes the bug. If you split the base shape, this doesn't happen:
Then the path is opened. This should be related to this.
Here is the sketch from the original issue with the quick fix