Just also wanted to add that I tried this with test.java (java-mode) and reproduced the issue as well (whereas no issue when using test.py), so it definitely seems CcMode related.
Also, I reproduced with "xterm-16color" and all the other "xterm-[0-9]+color" terminal types, but no other terminal types I tried reproduced the problem, including regular "xterm-color".
Best,
Jayden