Who says that it did ever work correctly on live? For me at least it never did. It is very similar to Balance Druids Eclipse, that's why i always thought it wasn't working correctly on live realms.
It was learned at Level 10, had a 0% damage boost on the tooltip, but it provided a 10% damage boost. This was kind of dumb.
At leven 80 you obtained your mastery, which should increase the effect of Shadow Orbs by 10%. So you had two possibilities.
Either it would be the 0% tooltip + 10%, or the 10% damage boost + 10%. It was the first one, and that was dumb.
Now it works like exactly like Balance Druids Eclipse. It has a 10% baseline damage boost, and mastery is added on that damage boost for a total of 21.6%.
How it worked on live realms was wrong. The permanent bugged at 20% tooltip we still have on live shows that. But just to few people ever think beyond that.