Yes, I tried to record a small gif of the bug. NOTE: the issue isn’t that I can’t assign to control+o, but rather that Obsidian is performing 2 actions when I press the hotkey.
I would expect that assigning a hotkey overrides the existing behavior.

I click into Test Note 1, but when I press ctrl+o, you see that it navigates back + inserts a newline
Let me know if you need any further repro instructions!