The problem was that by default, the API Validation subsystem is not enabled, and the messages you were interested in come from there.
I can't speak for older versions of BoundsChecker, but version 10.5 has no particular problems with this test. It reports the correct results and BoundsChecker itself does not crash. The test application does, however, because this particular test case completely corrupts the call stack that led to the function where the test code was, and as soon as that function terminated, the application did too.
The results: 100 messages about write overrun to a local variable, and 99 messages about the destination string not being null terminated. Technically, that second message is not right, but BoundsChecker only searches for the null termination within the bounds of the destination string itself, and after the first strcat call, it no longer contains a zero byte within its bounds.
Disclaimer: I work for MicroFocus as a developer working on BoundsChecker.