I killed a unit with Body Jumper with Bastion adjacent to it. My unit that was 5 spaces away became possessed.
There's no real consistency with these things. Grand Entrance doesn't care, but Nightfall wants the closest Unstealthed to Stealth. Things like Phantom Dash and Bolt will find an unoccupied space, even if it's not the closest. While Healing Mind only targets damaged champions. In most cases, because of the vagaries of the "closest" clause, what's done is what makes sense for the ability. In the case of Body Jumper, it is either a spirit or a parasite that seeks a new host - so narratively it makes sense that it goes until it finds someone suitable.