After playing around I can consistently reproduce on a couple of roundabouts so I’ve added some information to Trac (first time on Trac so I hope it is right). Broadly it looks to me if you have a roundabout with a node that is incorrectly placed such that the roundabout goes back on itself then multiple circles are created.

Going back on itself seems to depend on latitude / longitude point of view, so moving a node sufficiently out of the initial “circle” means that improving the circle causes potlatch to draw multiple circles.

I’d guess it initially goes wrong because a node is accidentally dragged to the wrong place in the initial roundabout. A user then clicks circle to fix this and get everything back into a circle (seems a logical thing to do to me) which results in something that looks better but is actually worse.