I find a corner made of stone, place a torch on one wall and it instantly moves to the adjacent wall of the other block.
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Created a 1x1 hole. Placing a torch on any side except west and the torch jumps to the west side.
If there are fewer adjacent walls – with no west – then the torch will jump to another side. South seems to have the lowest "priority". Thus torches can only be placed on a south wall if there are no other blocks to the side of the air block containing the torch.
I can also confirm this issue exists in 1.4.3 pre-release.
Some tickets marked as duplicates involve the torch jumping from a floor to a wall rather than wall to wall.
Confirmed. Happens in a hallway as well.
Can confirm this as also happening when trying to place torch on floor next to a wall, will pop to wall 1.4.3 pre-release, singleplayer. as [Mod] Do mentioned, it's still the same issue tho, the floor position is just another data value for the torch placement in that occupied air slot.
Environment: in a cave.
I had to lol xD

This also happens in creative mode.
Yeah, this seems like a really annoying bug, good thing Jeb had it fixed in 1.4.4, which is now being delayed. Y U Keep Delaying 1.4.4?
This is in 1.7.4 too. Well the hit box moves.