* Coverage: The arm extending slightly below allows the wiper blade to fully clear the lower portion of the rear window, achieving better coverage and preventing a streak at the bottom. The blade's arc is slightly larger than the window itself.
* Mechanism: The motor and linkage mechanism for the wiper are housed within the vehicle's bodywork. To provide the necessary arc of movement, the wiper arm needs to extend beyond the glass. If the arm stopped exactly at the window's edge, it would likely limit the effective cleaning area.
In short, it's not a malfunction; it's intentional design to improve wiper effectiveness.