It isn't a shortcut. It is actually a Windowss command to move the cursor right by word and NVDA is programmed to read the word the cursor moves through.

I don't know why it isn't reading properly but are you saying it is in Notepad and not in other programs such as Word or Wordpad or a browser? I suspect you may be having the problem because word wrap is off in Notepad. Notepad doesn't create new lines. If something you are working on is just a string of text with no line feeds, Notepad sees it as one continuous line and movement doesn't work as you expect.
Open the menus in Notepad.
Right arrow to format and down arrow.
When you get to word wrap, do you hear checked if you let Word wrap be spoken and then wait for a second or two? If not, press enter when you are on Word Wrap. It is now turned on and I think the problem will be solved.

Gene