Removing default .anjuta folder crashes Bzr

So I am having a hard time tracking down a reason why this happening so I don't know if it is a duplicate or not.

Basically when you create a new project in Anjuta it creates a .anjuta directory in your project folder. After adding that folder to bzr it crashes.

Here is the steps and the traceback.

Create a new Anjuta project to some directory.
Go to that directory.
bzr init
bzr add
bzr commit -m " "
bzr remove .anjuta

Traceback (most recent call last):
  File "/usr/lib/python2.5/site-packages/bzrlib/commands.py", line 857, in run_bzr_catch_errors
    return run_bzr(argv)
  File "/usr/lib/python2.5/site-packages/bzrlib/commands.py", line 797, in run_bzr
    ret = run(*run_argv)
  File "/usr/lib/python2.5/site-packages/bzrlib/commands.py", line 499, in run_argv_aliases
    return self.run(**all_cmd_args)
  File "/usr/lib/python2.5/site-packages/bzrlib/builtins.py", line 1109, in run
    force=file_deletion_strategy=='force')
  File "/usr/lib/python2.5/site-packages/bzrlib/mutabletree.py", line 52, in tree_write_locked
    return unbound(self, *args, **kwargs)
  File "/usr/lib/python2.5/site-packages/bzrlib/workingtree.py", line 1879, in remove
    recurse_directory_to_add_files(filename)
  File "/usr/lib/python2.5/site-packages/bzrlib/workingtree.py", line 1862, in recurse_directory_to_add_files
    self.walkdirs(directory):
  File "/usr/lib/python2.5/site-packages/bzrlib/workingtree.py", line 2323, in walkdirs
    if cur_disk_dir_content[bzrdir_loc][0] == '.bzr':
IndexError: list index out of range

bzr 1.6.1 on python 2.5.2 (linux2)
arguments: ['/usr/bin/bzr', 'remove', '.anjuta']
encoding: 'UTF-8', fsenc: 'UTF-8', lang: 'en_US.UTF-8'
plugins:
  launchpad /usr/lib/python2.5/site-packages/bzrlib/plugins/launchpad [unknown]
  xmloutput /home/will/.bazaar/plugins/xmloutput [0.5.0]
*** Bazaar has encountered an internal error.
    Please report a bug at https://bugs.launchpad.net/bzr/+filebug
    including this traceback, and a description of what you
    were doing when the error occurred.

I can remove other files/folders. There seems to be something about that folder that is hosing things.

Also I am running Anjuta trunk so I hope this is reproducible on Anjuta stable.