I've been seriously considering purchasing a TEO-5 (have a Novation Peak and Yamaha MONTAGE M6) but the discussion of the LFO value jump bug (https://forum.sequential.com/index.php/topic,8356.0.html) concerns me. Is the TEO-5 stable enough to be used in the studio? (I'll be controlling it from my DAW or a hardware sequencer like the Synthstrom Deluge.)
If I do get one, should I update the OS to the 1.1.0.1 beta?
I don't really see it as an issue, and it is improved on the latest OS. Not something significant to be a deciding factor in purchasing an instrument IMO.
And yes, update to the latest beta. There were minor code changes to improve pot handling. These will get pushed to a production release in the near future if you prefer to wait. You can always downgrade if needed.