Create a directory, a file and a shortcut in the file system:

cd
mkdir -p path/to/long/directory/in/file/system
echo "hello" > path/to/long/directory/in/file/system/file
ln -s path/to/long/directory/in/file/system/ shortcut

In emacs

C-x C-f shortcut
M-x grep <ret> hello * <ret>

in the output mouse-1 on

file 1:hello

Then type: C-x C-b

Then you see that the filename of the file found in the grep output is
~/path/to/long/directory/in/file/system/file

not ~/shortcut/file as you would have expected, and how it was before in
emacs version 27.1. Same thing happens in emacs 29.4.

I fixed this bug by removing two calls to file-truename in the
function compilation-find-file-1 and one call to the same function in
compilation-find-file (both functions in lisp/progmodes/compile.el)

Configured using:
 'configure --prefix=/opt/emacs'

Configured features:
CAIRO DBUS FREETYPE GIF GLIB GMP GNUTLS GSETTINGS HARFBUZZ JPEG
LIBSELINUX MODULES NOTIFY INOTIFY PDUMPER PNG SECCOMP SOUND THREADS TIFF
TOOLKIT_SCROLL_BARS X11 XDBE XIM XINPUT2 XPM GTK3 ZLIB

Important settings:
  value of $LC_MONETARY: sv_SE.UTF-8
  value of $LC_NUMERIC: sv_SE.UTF-8
  value of $LANG: en_US.UTF-8
  locale-coding-system: utf-8-unix

Major mode: Lisp Interaction

Minor modes in effect:
  tooltip-mode: t
  global-eldoc-mode: t
  eldoc-mode: t
  show-paren-mode: t
  electric-indent-mode: t
  mouse-wheel-mode: t
  tool-bar-mode: t
  menu-bar-mode: t
  file-name-shadow-mode: t
  global-font-lock-mode: t
  font-lock-mode: t
  blink-cursor-mode: t
  line-number-mode: t
  indent-tabs-mode: t
  transient-mark-mode: t
  auto-composition-mode: t
  auto-encryption-mode: t
  auto-compression-mode: t

Load-path shadows:
None found.

Features:
(shadow sort mail-extr emacsbug message mailcap yank-media puny dired
dired-loaddefs rfc822 mml mml-sec password-cache epa derived epg rfc6068
epg-config gnus-util text-property-search time-date subr-x mm-decode
mm-bodies mm-encode mail-parse rfc2231 mailabbrev gmm-utils mailheader
cl-loaddefs cl-lib sendmail rfc2047 rfc2045 ietf-drums mm-util
mail-prsvr mail-utils rmc iso-transl tooltip cconv eldoc paren electric
uniquify ediff-hook vc-hooks lisp-float-type elisp-mode mwheel
term/x-win x-win term/common-win x-dnd tool-bar dnd fontset image
regexp-opt fringe tabulated-list replace newcomment text-mode lisp-mode
prog-mode register page tab-bar menu-bar rfn-eshadow isearch easymenu
timer select scroll-bar mouse jit-lock font-lock syntax font-core
term/tty-colors frame minibuffer nadvice seq simple cl-generic
indonesian philippine cham georgian utf-8-lang misc-lang vietnamese
tibetan thai tai-viet lao korean japanese eucjp-ms cp51932 hebrew greek
romanian slovak czech european ethiopic indian cyrillic chinese
composite emoji-zwj charscript charprop case-table epa-hook
jka-cmpr-hook help abbrev obarray oclosure cl-preloaded button loaddefs
theme-loaddefs faces cus-face macroexp files window text-properties
overlay sha1 md5 base64 format env code-pages mule custom widget keymap
hashtable-print-readable backquote threads dbusbind inotify
dynamic-setting system-font-setting font-render-setting cairo
move-toolbar gtk x-toolkit xinput2 x multi-tty make-network-process
emacs)

Memory information:
((conses 16 36132 6294)
 (symbols 48 5126 0)
 (strings 32 13108 1028)
 (string-bytes 1 371205)
 (vectors 16 9282)
 (vector-slots 8 148153 12034)
 (floats 8 22 21)
 (intervals 56 201 0)
 (buffers 976 10))