I am having the same issue:
"System does not jog correctly when backlash setting is non-zero in Mach. This affects all axis.
Backlash adjustment is applied after each jog even though direction has not changed. Sometimes, the stepper goes the wrong direction, and often the jog amount is wrong. For instance a .01 jog may go .01, or may go something less. This happens whether the jog was done from the pc jog button, or the pendant, so I believe the pendant is not the problem.
Smaller jog increments result in more erratic behavior, especially when the jog amount is less than the backlash setting (which in my case is set to .003"."
I have submitted a post that links to a video showing my experience:
https://www.machsupport.com/forum/index.php?topic=44858.new#newAny help about why a setting of any non-zero backlash amount causes spurious behavior when jogging would be greatly appreciated.