The correct output is
.child-1 {
color: red;
}
.parent .child-1 {
color: yellow;
}
.parent .child-1.child-2 {
color: blue;
}
So you are right with what you expect. You can double check if you visit http://less2css.org/, it is the site linked under "Try it now" on http://lesscss.org/.
So you have probably found a bug in the SimpLESS parser.