I'm not sure when it was introduced. Anyway below is a long-winded explanation of the bug.
In the track record file, there is a section for last lap time with the car name, lap sequence 0 and lap sequence 1 time.
The logic of displaying the last lap time is to compare the track record last lap car name against the current car name, if the name differ, display '--:--:--', otherwise, display the value stored in lap sequence 0.
If you select a car which is different from the track record last lap car, '--:--:--' will be displayed at the beginning of race, which is correct. However, when you reach lap sequence 1, TIMER::Lap() will be called. This function will update the car name and lap sequence 1 time. But it does not update the lap sequence 0 time.
After this, when the last lap time display function compares the car name, since they are the same, it will treat the lap sequence 0 time as the last lap time and display in the timer box. This is why it suddenly appears when you reach lap sequence 1.