Standard mesher produces bulging artifact on simple circular subtractive loft

[unrelentingtech]

This model here (click the "Files" tab to download) has an interesting artifact when exported to a mesh format naively (export menu) or "Create mesh from shape"'d with the "Standard" mesher.
Initially this same artifact even showed up in FreeCAD's 3D viewport, but doesn't anymore.

Even though "Standard" seems to generally be quite good (e.g. it seems to handle fillets pretty well), on this model, on one side of the SubtractiveLoft (that's made from just two circles) it produces a noticeable bulging thing with big polygons. Adjusting parameters in the mesher options only changes their size. Seems like the problem is on the side where the sketches' circles have a "dot" in the 3D view.