I'm currently running 5.4b1 of Typinator, and I just reinstalled the current 3.5.1 (sandboxed version). It works as expected.

I know there was a recent beta update to Typinator, since installing the legacy 3.5.1 version. Not sure how many revisions there were between the initial problem cropped up, and the current "fix".

I'll report it to the Typinator people as well.