Why no &keywords in local functions?

[Ken Anderson <kanderso@BBN-Vax>]

With liszt version 8.29 (Opus 38.66 of Franz) I get the following message:

?Error: save.l: save-install: local functions can't use &keyword's save-install

When compiling the function (declared as a localf):

(defun save-install (thing table &aux type handler)
    ; Install thing in hash table, and recursively install its parts.
    (cond ((memq (setq type (save-type thing))
		 '(symbol number)))	; Needn't install
	  (t (cond ((zerop (save-count++ thing))
		    ; Increment access count, and install parts of thing if it
		    ; is being installe
		    (cond ((setq handler (get type 'save-install-parts))
			   (funcall handler thing table))
			  (t (ferror "Don't Know how to save ~S~%" thing))))))))

This used to work in earlier Opuses (like 38.44).  Can you explain the
change.