The issue described in this thread was already fixed in version 1.2038.
I quickly tested G83 with G98 with 1.2047 and it works fine at me.
I did not see your code but I guess you did not define the R plane on the second and etc. codes and the R value is not modal and if not defined then the only defined retract to value is the inital plane, so the software will start the peck drilling and the retract to the initial plane anyways.
If not this is the case then please post your code to let me test it, because what codes I tested with works fine.
The G83 code definition from the manual:
Peck drilling cycle with full backoff distance: G83
To execute a pecl drilling cycle with a full back off distance, program G83 X... Y... Z... Q... R... ,
where the X, Y and the R parameters are optional and the Q parameter is modal.
The G83 code is very similar to the G73, the only difference is that at each peck increments the
controller returns to the R plane if the R plane was programmed or to the initial plane if the R
parameter was not set. The purpose of this command is the same as of the G73, but because of the
full retract at each increments can break spiral chips better.