SVN reports that all targets are not part of same working copy when there is an svn:external that points within the repository

I originally reported this issue with TortoiseSVN [1], but we narrowed it
down to an issue in Subversion 1.7dev.

If I am committing a working copy with modifications to dir1 and dir2, dir2
being an svn:externals directory that points to a location *within* the
repository, I get an error that I didn't see with SVN 1.6:

svn: E155004: Commit failed (details follow):
svn: E155004: Are all targets part of the same working copy?
svn: run 'svn cleanup' to remove locks (type 'svn help cleanup' for details)

I've created a batch file [2] to reproduce the issue, using svn and svnadmin
from [3]. Just copy the text into a .bat file and drop it in a directory
with svn.exe and svnadmin.exe.

The versions I used to produce the error are:
svn, version 1.7.0-dev(r1088319)
svnadmin, version 1.7.0-dev(r1088319)

[1]
http://old.nabble.com/TSVN-reports-that-all-targets-are-not-part-of-same-working-copy-when-there-is-an-svn%3Aexternal-that-points-within-the-repository-td31103921.html

[2]
SET ROOTDIR=%cd%
SET REPOS=TestWorkingCopyWithExternals
SET REPOS_PATH=file:///%ROOTDIR%/%REPOS%
SET WC=%REPOS%-wc
SET SVN=%ROOTDIR%/svn.exe
SET SVNADMIN=%ROOTDIR%\svnadmin.exe

IF EXIST %REPOS% rmdir /s /q %REPOS%
IF EXIST %WC% rmdir /s /q %WC%

%SVNADMIN% create %REPOS%
%SVN% co %REPOS_PATH% %WC%
cd %WC%
mkdir proj1 proj2
%SVN% add proj1 proj2
%SVN% propset svn:externals "^/proj2 proj2" "proj1/"
%SVN% ci -m "" proj1 proj2
%SVN% up

echo proj1 > proj1/file1.txt
echo proj2 > proj2/file2.txt
%SVN% add proj1/file1.txt proj2/file2.txt
%SVN% ci -m ""
%SVN% up

cd proj1
echo > file3.txt
echo > proj2/file4.txt
%SVN% add file3.txt proj2/file4.txt
%SVN% ci -m "" file3.txt proj2/file4.txt
cd ../..

[3]
http://nightlybuilds.tortoisesvn.net/latest/x64/small/

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