No, this is a regression bug that has been there for a while.
Unfortunately, MWiF does not allow temporary overstacking to switch units, which is sometimes very annoying.

This bug has been there for a while; it snuck in at some point.

I was on the Allied side when we had a poor US player. Japan captured Pearl on the invasion turn, capturing the Wasp. The game did not get much further.

I have gotten convoys from Australia to the UK going eastward. At the time I did this, there were no westward routes from Australia, so I have not seen what happens when there are both eastward and westward routes, but if there are only eastward routes, they work.

And some of the CPs used were US ...

Actually, the quote is NOT by Einstein; that is a misattribution. The original quote seems to be from a Knoxville Alcoholics Anonymous meeting in 1981.

And physicists keep doing the same experiment many times, trying to get a different result.

Create a Bs meson. Look at its decay. Is it a pair of ...

Unfortunately, I don't think so.

It is a very bad idea to delete units from MWiF once they have been created. MWiF itself does not do this. Instead, it moves units to the "Removed" pool. Do an edit to move the unit in pools. Find the unit, there will be a line with a bunch of zeros and a -1. Change that -1 to a zero, and change the ...

Ethiopia should have gone Allied in the conquest phase, after the Italian land and air units were removed from the game.

If it did not (and I have had trouble with this in the past), try declaring war on it with an Axis power next turn.

If you are using Option 47 ((Isolated reorganization) you may ...

Ethiopia should now be aligned to an Allied major power. I have seen MWiF get this wrong. Did it work correctly?

It helps to actual read the rules. I see that the surrender and transfer of Italian naval units on board, in production and repair pools was handled correctly.

Read the rules? I thought there was a rule against that somewhere. :)

I guess the issue is with Trieste and Pola and the rebase of ...

Yes, the files should have a GAM extension. However, Windows often does not show the extension. Check it by right-clicking and checking "Properties".

Ethiopia is not aligned to Italy, but conquered by it. You do not need to conquer Ethiopia to knock Italy out of the war. Indeed, the Allies can't conquer Ethiopia, they liberate it.
If Albania, Italian Somaliland, Eritrea and Libya have been conquered by the Allies, get all the Italian units ...

Ethiopia is not aligned to Italy, but conquered by it. You do not need to conquer Ethiopia to knock Italy out of the war. Indeed, the Allies can't conquer Ethiopia, they liberate it.
If Albania, Italian Somaliland, Eritrea and Libya have been conquered by the Allies, get all the Italian units back ...

I had, or have, some infection (or other, they do not know which bug it is yet) in the stomach after the surgery a couple of weeks ago. They opened a drainage into my chest (not sure if chest is the right word, but stomach is the only other word I can think of and that doesn't fit either ...

What is the garrison ratio looking like in Italy?

One other change that could be made: When one moves an HQ, MWiF checks supply twice, once when you pick the HQ up, and once when you put it down. I do not understand why the first check is necessary; I can't see how the supply status of any unit while the HQ is in midair can affect anything.

Why does your cntl-Q screen say "Dry Dock" at one point when every place else it says the normal "Repair Pool"? (Right after you show the destroyed pool.)

Ii am reasonably sure there is a limit to the supply length for isolated reorganization, but that it is lot bigger than 10 hexes. What it is I don't know, but I remember it exists. If it were only 10 hexes, German units around Moscow would be isolated.

I am very impressed by "Losses for turn". Not quite perfect; there was that one CW CP.

I have experienced that. I have never gotten a saved game that has happened to to work. I just assume that the file got corrupted somehow, use a previous saved game, and go on. It has not happened to me very often.