Hopefully the picture pretty much explains it! The green zig zag is for the dinosaur/raptor.
With or without the funnel simplification setting enabled it seems like the agent actually is getting its path simplified (its not actually following the crazy zig zag). The gizmo itself isn’t showing the actual path.
I only just started looking at the funnel simplification toggle; hadn’t thought much of the zig zag lately. But it seems like something is going wrong here. Possibly a bug or, more likely, I’m doing something wrong!
Using 4.3.79 beta (unmodified)
EDIT: I might be blind/dumb! There is a very thing blue line that seems to be the actual path. I will leave this here for posterity and maybe a suggestion/question on changing that gizmo line’s color!