This is consistent with VIM behavior. When showing a visual selection,
VIM only extends it past the last character if eol is in listchars (even
if nolist is set).
The test was hoping to not find a tags file, but didn't actively guard
against it. In my case, I had a tags file present which was causing
different output to be generated. To fix this, let's set the tags
option to look for an unlikely filename.