Yes, it does, noticeably so both in low and high mode (newer TIR optic version). Coupled with an F04 diffuser when needed however, makes it magnifique.
It's not supprising to see a square beam pattern......after all the LED is square in most 3w-5w leds. At some distance (depends on the design of the reflector) there will appear a square pattern as you actually focus on the square led.