To me this looks like an imprecision when doing the conversion to a path (which is done internally, still keeping the attributes of the circle, but in a separate set of properties). I tried raising Inkscape's precision, but it didn't change anything, only the length of the numbers, but not the appearance of the circle.
Can't tell you if it's a bug or how much imprecision is to be expected, but what helps as a workaround is to convert to path, select all nodes and add a few with the + button in the top left. Only then apply the path effect.
Something doesn't work? - Keeping an eye on the status bar can save you a lot of time!