kotlin.text.Regex.replace interprets \ as a special character not just in the match string, but also in the replacement string. You have to quote the replacement string with java.util.regex.Matcher.quoteReplacement.

I've added a test that passes on this branch and fails on the main branch.

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Cursor tracked the bug down and fixed it; I wrote the test and verified that it fails on main and passes on this branch.