dnsmasq doesn't listen on a given 127.* listen-address if bind-dynamic, interface and except-interface options are given

If I start dnsmasq as follows

    dnsmasq --conf-file= --resolv-file=/tmp/r.conf --bind-dynamic --listen-address=127.0.3.1
    echo "nameserver 192.168.1.254" > /tmp/r.conf

then I can resolve a name, e.g., "www.microsoft.com", with dig.

    dig @127.0.3.1 www.microsoft.com

And I can still resolve names with that "dig" command if I start dnsmasq as follows (with "--interface=eth0").

    dnsmasq --conf-file= --resolv-file=/tmp/r.conf --bind-dynamic --listen-address=127.0.3.1 --interface=eth0
    echo "nameserver 192.168.1.254" > /tmp/r.conf

However, I can't resolve anything if I start dnsmasq as follows (with "--except-interface=lo").

    dnsmasq --conf-file= --resolv-file=/tmp/r.conf --bind-dynamic --listen-address=127.0.3.1 --interface=eth0 --except-interface=lo
    echo "nameserver 192.168.1.254" > /tmp/r.conf

Dnsmasq just doesn't respond even though it's supposedly listening at 127.0.3.1.

> # netstat -nlp | grep :53
> tcp 0 0 127.0.3.1:53 0.0.0.0:* LISTEN 5887/dnsmasq
> tcp 0 0 192.168.1.20:53 0.0.0.0:* LISTEN 5887/dnsmasq
> tcp6 0 0 fe80::f2de:f1ff:fe6b:53 :::* LISTEN 5887/dnsmasq
> udp 0 0 0.0.0.0:5353 0.0.0.0:* 768/avahi-daemon: r
> udp 0 0 127.0.3.1:53 0.0.0.0:* 5887/dnsmasq
> udp 0 0 192.168.1.20:53 0.0.0.0:* 5887/dnsmasq
> udp6 0 0 :::5353 :::* 768/avahi-daemon: r
> udp6 0 0 fe80::f2de:f1ff:fe6b:53 :::* 5887/dnsmasq

If I start dnsmasq as above but with "--bind-interfaces" instead of "--bind-dynamic" then the "dig" command works.

Additional info:

> # ifconfig
> eth0 Link encap:Ethernet HWaddr f0:de:f1:6b:22:bf
> inet addr:192.168.1.20 Bcast:192.168.1.255 Mask:255.255.255.0
> inet6 addr: fe80::f2de:f1ff:fe6b:22bf/64 Scope:Link
> UP BROADCAST RUNNING MULTICAST MTU:1500 Metric:1
> RX packets:124343 errors:0 dropped:0 overruns:0 frame:0
> TX packets:59204 errors:0 dropped:0 overruns:0 carrier:0
> collisions:0 txqueuelen:1000
> RX bytes:56834893 (56.8 MB) TX bytes:8614172 (8.6 MB)
> Interrupt:20 Memory:f2500000-f2520000
>
> lo Link encap:Local Loopback
> inet addr:127.0.0.1 Mask:255.0.0.0
> inet6 addr: ::1/128 Scope:Host
> UP LOOPBACK RUNNING MTU:65536 Metric:1
> RX packets:806 errors:0 dropped:0 overruns:0 frame:0
> TX packets:806 errors:0 dropped:0 overruns:0 carrier:0
> collisions:0 txqueuelen:0
> RX bytes:220819 (220.8 KB) TX bytes:220819 (220.8 KB)

Dnsmasq version: 2.65-1ubuntu1