Thx @daltontc for a pull request!
We would need an issue, though, which describes what and_why_ should be achieved.

I ask your assistance in understanding this.

Basically you want to have to "not convert list" to @list.

Your desired outcome from the java test in a more readable form:

[
   {
      "@id" : "_:b0",
      "http://www.w3.org/1999/02/22-rdf-syntax-ns#first" : [ { "@id" : "Arnold" } ],
      "http://www.w3.org/1999/02/22-rdf-syntax-ns#rest" : [ { "@id" : "_:b1" } ]
   },
   {
      "@id" : "_:b1",
      "http://www.w3.org/1999/02/22-rdf-syntax-ns#first" : [ { "@id" : "Bob" } ],
      "http://www.w3.org/1999/02/22-rdf-syntax-ns#rest" : [ { "@id" : "_:b2" } ]
   },
   {
      "@id" : "_:b2",
      "http://www.w3.org/1999/02/22-rdf-syntax-ns#first" : [ { "@id" : "Catherine" } ],
      "http://www.w3.org/1999/02/22-rdf-syntax-ns#rest" : [ { "@id" : "http://www.w3.org/1999/02/22-rdf-syntax-ns#nil" } ]
   }
]

This seems to come close to the one already in our tests at https://github.com/jsonld-java/jsonld-java/blob/master/core/src/test/resources/json-ld.org/fromRdf-0010-out.jsonld which implements https://w3c.github.io/json-ld-api/tests/fromRdf-manifest.html section "Test t0010 List pattern without rdf:nil".(for embedded view see also https://json-ld.org/test-suite/reports/ "Test 0010: List pattern without rdf:nil").
The corresponding input to that test differs from your input only by your adding of

_:b2 <http://www.w3.org/1999/02/22-rdf-syntax-ns#rest> <http://www.w3.org/1999/02/22-rdf-syntax-ns#nil> .

As this rdf:nil seems to correspond to the title of the test ("Test t0010 List pattern without rdf:nil") it seems that it's a desired outcome to not have a @list by leaving out that rdf:nil , which implies that it is desired to have a @list if that rdf:nil is added.

There are some other tests related to your case, namely t0010,t0013,t0014 and t0015 (respectively see https://json-ld.org/test-suite/reports/ : Test 0010 etc.)

If you could point me to a jsonld spec which covers your implementation (I may well have overseen it) this would be very helpful.