[web2py] some functionality to mix html and {{python expression}} is broken since 1.92.3, even back to 1.91.6

[dlypka]

The following worked in  1.77.3 but not in 1.91.6 and not in 1.92.3

<ul id="dhtmlgoodies_tree" class="dhtmlgoodies_tree">
{{level0result = DIV()}}
{{for row in sortedfolderlist:}}
{{  myrow = row[1]}}
{{  myli = LI(A(myrow['strRegionNameRendered'], _href="#") }}
{{  level0result.append(myli)}}
{{pass}}
{{=level0result}}
</ul>

This gets an error:
Traceback (most recent call last):
  File "c:\Google\AppEngine\esentrnet\gluon\main.py", line 449, in
wsgibase
    serve_controller(request, response, session)
  File "c:\Google\AppEngine\esentrnet\gluon\main.py", line 194, in
serve_controller
    run_view_in(response._view_environment)
  File "c:\Google\AppEngine\esentrnet\gluon\compileapp.py", line 464,
in run_view_in
    lambda: compile2(parse_template(response.view,
  File "c:\Google\AppEngine\esentrnet\gluon\cfs.py", line 47, in
getcfs
    data = filter()
  File "c:\Google\AppEngine\esentrnet\gluon\compileapp.py", line 466,
in <lambda>
    context=environment),layer))
  File "c:\Google\AppEngine\esentrnet\gluon\restricted.py", line 173,
in compile2
    return compile(code.rstrip().replace('\r\n','\n')+'\n', layer,
'exec')
  File "c:\Google\AppEngine\esentrnet\applications\init/views\default/
m.html", line 102
    <ul id="dhtmlgoodies_tree" class="dhtmlgoodies_tree">
    ^
SyntaxError: invalid syntax