Caused by rB80cbbd2843c2: Knife: support vert/edge snapping when not directly over a face.
Above commit changed the logic so that the distance argument to
EDBM_face_find_nearest is respected (forcing the distance to zero for the
particular case of this report). However this lead to a check in
EDBM_face_find_nearest_ex never returning a BMFace (because dist_test and
r_dist were both zero).
If I understand the logic correctly, we should still return the found
face in this case, ignoring the distance check [which is what this patch
does].