The special declarations of &aux variables were ignored. Example:

(defun f1 (x &aux y)
  (declare (special y))
  (list (f2 x) y))

(defun f2 (x)
  (declare (special y))
  (setq y 'y)
  (list x y))

src/cmp/cmpenv.lsp

@@ -269,11 +269,12 @@
 	(warn "The variable name ~s is not a symbol." var))))
 
 (defun c1body (body doc-p &aux
+	            (all-declarations nil)
 		    (ss nil)		; special vars
 		    (is nil)		; ignored vars
 		    (ts nil)		; typed vars (var . type)
 		    (others nil)	; all other vars
-                    doc form)
+	            doc form)
   (loop
     (when (endp body) (return))
     (setq form (cmp-macroexpand (car body)))
@@ -282,6 +283,7 @@
       (when (or (null doc-p) (endp (cdr body)) doc) (return))
       (setq doc form))
      ((and (consp form) (eq (car form) 'DECLARE))
+      (push form all-declarations)
       (dolist (decl (cdr form))
         (cmpck (or (not (consp decl)) (not (symbolp (car decl))))
                "The declaration ~s is illegal." (cons form decl))
@@ -343,7 +345,7 @@
      (t (return)))
     (pop body)
     )
-  (values body ss ts is others doc)
+  (values body ss ts is others doc all-declarations)
   )
 
 (defun c1add-declarations (decls &aux (dl nil))

src/cmp/cmplam.lsp

@@ -134,7 +134,7 @@
   (cmpck (endp lambda-expr)
          "The lambda expression ~s is illegal." (cons 'LAMBDA lambda-expr))
 
-  (multiple-value-setq (body ss ts is other-decls doc)
+  (multiple-value-setq (body ss ts is other-decls doc all-declarations)
                        (c1body (cdr lambda-expr) t))
 
   (when block-it (setq body (list (cons 'BLOCK (cons block-name body)))))
@@ -193,7 +193,7 @@
 	  (let ((var (first specs))
 		(init (second specs)))
 	    (setq let (cons (if init (list var init) var) let))))
-	(setq body `((let* ,(nreverse let) (declare ,@other-decls) ,@body)))))
+	(setq body `((let* ,(nreverse let) ,@all-declarations ,@body)))))
 
     (let ((new-vars (ldiff *vars* old-vars)))
       (setq body (c1decl-body other-decls body))