After a bit more investigation don't apply this patch because the change is insufficient to correct another issue.
Specifically org-babel-tangle-collect-blocks must check for and resolve any closures that are passed to :tangle _before_ testing (string= src-tfile "no"). As it stands blocks that are marked :tangle (and "no") with a closure incorrectly make it to a call to (org-babel-get-src-block-info) which causes a call to org-babel-process-params when :tangle would be "no". Working on a proper fix now.