For 1.7 branch, it was fixed in the 1.7.14 release. If I remember it correctly, the issue started in 1.7.11 and was fixed in 1.7.14. So it shouldnot be there in 1.7.6
Any issues with 1.8.x and default widgets is completely independent of default widgets and 1.7.x. The default widgets code was completely rewritten for Elgg 1.8.
Webgalli is correct on the timeline for the 1.7 problems (problem in 1.7.12 and 1.7.13, fixed in 1.7.14). We never had reports of problems with earlier versions of Elgg 1.7.
Usual advice applies here:
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Security issues should be reported to security@elgg.org!
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