iOS 16 and I've not used a spell checker for years because it kept correcting my swearing & slang to something I didn't want to say. I did read your comment fully. I replied because I had personal experience that contradicted yours. The "it doesn't place the cursor beside the word I want" gets me a couple of times a week for a couple of years.
I thought you like other repliers are having cursor “misbehaving” all the time, since you wrote it misplaces cursor 50% of the time earlier. That is definitely not my experience.
A couple of times per week it happens for me that the cursor chooses to land on the wrong side of white space or such, but that is infrequent enough and easy to fix that it does not bother me.