Compound shape issue with smart corners

[Wiredframe]

Everything works until I change the corners to smart corners, please have a look at the gif.  :D

[Ken Cope]

The gif looks like it's a redraw issue, but I'm not seeing it here, all works as expected.

[Butler To Cats]

I can get something a little similar if I set my renderer to WARP (software-based, slower). 

Edit menu, Preferences, Performance, check if the Renderer drop-down is using your graphics card/chip or the slower WARP renderer.

 

Probably not relevant, given the vector nature of the program, but I'm paranoid: 

Is that a custom grid? What are your document dimensions? Click the background (no selection), click Document Setup (top left), and change the document units to pixels.

[Chris B]

Like obtusity said, I can reproduce this if I use WARP but it still isn't as bad as what your clip shows. Do you have the History Panel displayed? I think adding a complex grid seems to slow it down a little bit as well.