<this is a Copy, as well Jan 28's above, of a Post I made in a similar Thread in case some Cachers have Notifications to this thread enabled>
Well I downloaded the latest version of the App, went out Geocaching today: STILL THE SAME PROBLEM!!! My workaround is still the same as I posted on Jan 28 above. An improvement on it is to occasionally switch between the Geocache Navigation/Compass and the iPhone's Compass.
Better yet, if you're able to navigate with just the iPhone's Compass, keep the iPhone's Compass App in the Foreground (on top), occasionally checking the Geocache's Navigator/Compass for distance and direction confirmation. Yes, this is all a royal pain. but less so than having the current Geocache App Bug take you in an up-to- 125' diameter Wild Goose Chase.