It's been fixed (in Dec, by Dave), but the city layer doesn't get updated very often (3-6 months), so it's still waiting for an update.
With apologies to my elders and betters, I don't think that's absolutely so. The city layer is updated at the same frequency as the map, if the appearance of new "cities" and the changes to the smudges is anything to go by. What hasn't been updated is the removal of city names that are no longer supported by any named road segments.
Over the last few weeks, I've been adjusting the boundaries of the villages in the Sevenoaks/Tonbridge/Royal Tunbridge Wells areas, changing segment names accordingly, and the smudges for all of them have changed with each update. So Fordcombe, Langton Green, Penshurst, Oxted, Limpsfield, Sundridge (where I accidentally named a couple of streets in Oxted with the Sundridge city name), and many more, have all had their smudges added, changed, removed as appropriate. However, there is still a Tunbridge Wells city name (but no smudge) visible on the map southwest of Royal Tunbridge Wells, even though there are no segments supporting it, and there's a Redhill (Surrey) name still visible, again no smudge, just north of Bletchingley, also with no segments named that.
This makes me believe there is still at least one identically-named segment in both Hants and Kent instances (the shape of the smudge suggest at least four segments overall). I can't identify them using WMECH, but the fact the smudge is still there is an indication, when it changes elsewhere to reflect segment edits.