Are you sure it is the effect from this mod?
I just tested with game version 1.0.0, with and without this mod:
In placing rail actual item, it is NOT allowed to place over cliffs.
In placing rail ghost, bots will use cliff explosives before placing.
And most importantly, these behaviours are the SAME after disabling this mod.
If there are other mod(s) that are also altering the rails, you can find a blue line of text under the item/entity tooltip.