I've seen it happen, but only in one instance for a character who had multiple spaces after his name (As part of his name, to force the editor to "invisibly" distinguish him from another character with the same name). In your example, I can't imagine why it's doing that (Nor do I really know "why" in my own example; two spaces after a name works fine but three is apparently right out).
Of course, some dialog gets used twice per mob instead of once for some reason, and I don't understand that either.
I have an escort, where everything they say displays their name in the text box, while other NPCs talk normally. The Chat history doesn't show this error.
for example, say I have an ally (Icy Cool) and and escort (Dr. Feelgood).
Chat History:
[NPC] Icy Cool: Hey. Ice to see you again.
[NPC] Dr. Feelgood: Thank you for saving me.
What is seen in text boxes
"Hey. Ice to see you again."
"[u]Dr. Feelgood:[u] Thank you for saving me."
Is it some bug with my arc, or has anyone else seen this come up?
Freeedom
H: Victra Defile (Rad/Dark) & Hot Hits (Fire/SD)
V: Spike Cream (NW) & Crescent Wind (Nin/Storm)
Sub Hero Inc ARC: 1541
--If you don't like what I have to say, it was probably a typo you are refering to.