Crash on update after upgrading working copy with obstructed directories

Subversion 1.7.0-alpha2, on Windows (using neon), but I believe it
should reproduce on every platform.

1. svn-1.6.exe checkout
http://svn.apache.org/repos/asf/subversion/trunk/notes/api-errata wc
A wc\1.7
A wc\1.7\ra001.txt
A wc\1.7\wc001.txt
A wc\1.7\wc002.txt
A wc\1.7\wc003.txt
A wc\1.7\wc004.txt
A wc\1.7\wc005.txt
A wc\1.7\wc006.txt
A wc\1.7\wc007.txt
Checked out revision 1140141.

2. rd /q /s wc\1.7
3. svn-1.6.exe st wc
! 1.7

4. svn-1.7.exe upgrade wc
Upgraded 'wc'.

5. svn-1.7.exe up wc
Updating 'wc':
svn: E235000: In file '..\..\..\subversion\libsvn_wc\update_editor.c'
line 1563: assertion failed (a
ction == svn_wc_conflict_action_edit || action ==
svn_wc_conflict_action_delete || action == svn_wc_
conflict_action_replace)

This application has requested the Runtime to terminate it in an unusual way.
Please contact the application's support team for more information.

-- 
Ivan Zhakov