Summary: Placing the Town Banner next to a cliff will lead to citizens being scattered at top and bottom (and possibly partway up) of the cliff. It is also possible to end with the fire pit floating in the air at a different level than the banner.
Steps to reproduce: Place the Town Banner next to a cliff during startup.
Expected Results: All Citizens, tools, other starting inventory and fire pit at the same level as the Town Banner.
Actual Results: Town Banner placed at desired location, citizens, tools, misc starting inventory and fire pit placed at several different levels.
Summary
When placing the starting banner, if you place it near the top edge of a cliff, the villagers arrive but are split up, with some above the cliff, and some below.
Steps to reproduce
At the start of a game, place the banner next to the top edge of a cliff.
temporarily opened/merged these threads… i was unable to locate the previous (first) report, but i agree with @Geoffers747 that something similar had been reported…
Hearthlings spawn always in a circular formation around the fire pit at the beginning of the game. So this isn’t really a bug but the spawning disregards the height of terrain next to the fire pit. Next time two more blocks space between flag and cliff will solve the problem and in this save you can place a ladder and destroy it afterwards.