Autocorrect making cursor move while typing

My wife's Macbook Pro Retina will autocorrect a word, but move the cursor back to the word. So while she's typing, it corrects the word after shes a word or two past that one but moves the cursor back to the corrected word. Her sentences get jumbled if she doesnt notice right away. I suspected her Logitech wireless mouse was causing trouble, I had her unplug it and restart. When it started, she purposely spelled something wrong and it removed the cursor from the box and started scrolling (when she hit space bar). Any ideas?

Edit: It seems to have started after the most recent OS update. It doesnt happen on my rMBP