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Attaching patch file. See my comments on the bug for more details.
I'll take a more in-depth look at this patch later. My immediate feedback is that I'd prefer to normalize paths with 'Unix' path-element separators, since this works on both Unix and Windows. So, not a big change from what you've proposed.
Thanks for investigating this issue -- I tried several approaches to provoking this bug, but didn't see anything since I'm on Linux.