Maybe this is a feature and not a bug, or properly an issue for the taxonomy context module, but if you assign a node to both the Distant Parent term and to the distant child term, the breadcrumb does not display the child term when on the node page, although it displays on the taxonomy page. So to make the breadcrumb work properly, you do not assign the node to the parent, only the child, and you have to make users aware of that by updating the help text for the master vocabulary.