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

I've been seeing the following error regularly, and most recently produced
the issue with TortoiseSVN 1.6.99, Build 20981.

I'll have a commit that includes files in regular directories and an
svn:external directory. The svn:external points within the same repository
(^/PathToSvnExternal) so the commit should succeed and did under TSVN 1.6.x.
However with the nightly build, TSVN issues the following error:

Commit
Commit failed (details follow):
Are all targets part of the same working copy?

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