During the last year, I discovered dozens of bugs in different widespread anti-virus products. Not all of them can be as easily explained as this one and only a few a as critical as this one, but still...
Concerning your question: In general, I consider it quite difficult (if not impossible) to give a concrete answer. The software, as it is now, is just in a horrible state. Depending on what your threat model is, how experienced you are as a user, it might very well decrease your system security.
Where things get hairy are antivirus suites in particular. It's one thing to passively scan files, but AV suites have a bad habit of hooking into the operating system and making other changes, usually in the name of real-time monitoring. This is where I feel their supposed benefits fall flat. It would be one thing if these hooks were also passive, but Windows and most other operating systems make it difficult to access the kernel's data on purpose, and I don't trust an antivirus suite to do so in a safe manner. It's one thing for an exploit to compromise passive scanner running with userland permissions, and another thing entirely to exploit an AV suite with direct kernel access. The latter can cause the security features to backfire pretty hard.
First of all, this bug was fixed nine months ago (see Timeline).
This is in no way a "fiasco", this is normal process of improving security of the product. Bug reported and timely fixed, bounty paid, no exploit was found in the wild, no harm done. You can count yourself number of similar bugs fixed in Chrome or Firefox this year.
>is it safe to say that running an antivirus is actually increasing your risk instead of decreasing it?
Yes, running ANY software on your computer increases attack surface, thus increasing risks. In the same time running AV decreases many other risks.
My opinion is all in all AV still does more good then harm today, provided it's actively developed by credible shop and timely updated.
Write parsing for complicated formats in C/C++. Run it on suspicious files from the outside world. What could possibly go wrong? Play stupid games, win stupid prizes.