Yes, in your simplified example, the "curve_position" attribute is being stored only on the curve control points (and if this is a Bezier Circle, that means only four control points with values 0, 0.25, 0.5, and 0.75). The "Curve to Mesh" node interpolates these values onto the mesh, so the "curve_position" attribute grows from 0 up to 0.75 and then back down to 0 as you move along the curve. But, even if you fixed this (say by resampling the curve at a high resolution) to calculate proper "curve_position" values on all the vertices of the created mesh, the shader would still try to interpolate between the "last" vertices of the mesh and the "first" vertices (which is what's happening in your first screenshot, I think).
I think the best solution, as unsatisfying as it is, is to double up the start and end vertices of your curve. If your handles are "Auto" or something, switch them to some other mode, like V > Aligned:

and then shut off cyclic (AltC):

Pick one of the endpoints and split it with Y but leave it in position with Esc. Here, the highlighted control point has actually been split from the existing curve -- if you grabbed it, it would be a single point moving free from the rest of the curve:

With that extra control point still selected, Shift-select the other endpoint:

and hit F to connect them with a segment:

Now, you can toggle cyclic back on with AltC, and the interpolation will occur on the zero-length segment you created.

This works because the duplicate control points can be assigned curve_offset=0 and curve_offset=1 respectively, and the zero length segment created between them will hide the interpolation from 1 back down to 0.
As an alternative, as per @MarkusVonBroady's comment, this modification can be implemented in a fairly simple geonodes network directly on the cyclic curve without having to edit it:

Here, the "Set Handle Type" ensures the handles aren't in "Auto" mode, which will cause deformation of the curve when its cyclic nature is broken, and then the "Trim Curve" node has the effect of breaking the curve's cyclic nature while keeping the final endpoint at the same location as the start. The rest of the network just stores the "curve_position" as in your original geonodes network, but the stored position will now be 0 at the start of the curve and 1 at the end. Your material can stay as-is:

and the final result is similar to the above:

There is one issue with this approach -- the mesh will technically be disconnected where the curve is broken, and using "Merge by Distance" will reintroduce the original issue at the merge point.
If this is a problem, I guess you'll need to figure out how the linked duplicate can be applied to your situation.