patch 8.2.3088: with 'virtualedit' set to "block" Visual highlight is wrong

Problem:    With 'virtualedit' set to "block" Visual highlight is wrong after
            using "$".  (Marco Trosi)
Solution:   Do not set w_old_cursor_lcol to MAXCOL. (closes #8495)
diff --git a/src/drawscreen.c b/src/drawscreen.c
index bb0d887..77a8a7b 100644
--- a/src/drawscreen.c
+++ b/src/drawscreen.c
@@ -2007,7 +2007,9 @@
 		ve_flags = save_ve_flags;
 #endif
 		++toc;
-		if (curwin->w_curswant == MAXCOL)
+		// Highlight to the end of the line, unless 'virtualedit' has
+		// "block".
+		if (curwin->w_curswant == MAXCOL && !(ve_flags & VE_BLOCK))
 		    toc = MAXCOL;
 
 		if (fromc != wp->w_old_cursor_fcol
diff --git a/src/testdir/dumps/Test_visual_block_with_virtualedit.dump b/src/testdir/dumps/Test_visual_block_with_virtualedit.dump
new file mode 100644
index 0000000..2991a63
--- /dev/null
+++ b/src/testdir/dumps/Test_visual_block_with_virtualedit.dump
@@ -0,0 +1,8 @@
+|a+0&#e0e0e08@5> +0&#ffffff0@43
+|b+0&#e0e0e08@3| @2| +0&#ffffff0@42
+|c+0&#e0e0e08@1| @4| +0&#ffffff0@42
+|~+0#4040ff13&| @48
+|~| @48
+|~| @48
+|~| @48
+|-+2#0000000&@1| |V|I|S|U|A|L| |B|L|O|C|K| |-@1| +0&&@3|3|x|7| @6|1|,|7| @10|A|l@1| 
diff --git a/src/testdir/test_visual.vim b/src/testdir/test_visual.vim
index 789ff6f..5b2a32c 100644
--- a/src/testdir/test_visual.vim
+++ b/src/testdir/test_visual.vim
@@ -2,6 +2,7 @@
 
 source shared.vim
 source check.vim
+source screendump.vim
 
 func Test_block_shift_multibyte()
   " Uses double-wide character.
@@ -1241,5 +1242,25 @@
   bw!
 endfunc
 
+func Test_visual_block_with_virtualedit()
+  CheckScreendump
+
+  let lines =<< trim END
+    call setline(1, ['aaaaaa', 'bbbb', 'cc'])
+    set virtualedit=block
+    normal G
+  END
+  call writefile(lines, 'XTest_block')
+
+  let buf = RunVimInTerminal('-S XTest_block', {'rows': 8, 'cols': 50})
+  call term_sendkeys(buf, "\<C-V>gg$")
+  call VerifyScreenDump(buf, 'Test_visual_block_with_virtualedit', {})
+
+  " clean up
+  call term_sendkeys(buf, "\<Esc>")
+  call StopVimInTerminal(buf)
+  call delete('XTest_beval')
+endfunc
+
 
 " vim: shiftwidth=2 sts=2 expandtab
diff --git a/src/version.c b/src/version.c
index 242b556..0c98a98 100644
--- a/src/version.c
+++ b/src/version.c
@@ -756,6 +756,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    3088,
+/**/
     3087,
 /**/
     3086,