As described here:
http://svn.haxx.se/dev/archive-2005-04/1849.shtml
http://svn.haxx.se/dev/archive-2005-05/0254.shtml
REPO=http://localhost/repo
svnadmin create repo
svn mkdir $REPO/foo $REPO/foo/bar
svn co $REPO wc
svn ps x x wc
svn cp $REPO/foo wc/zig
svn mkdir wc/zig/bar/baz
svn ci wc -m ""
During the commit the DAV layer libsvn_ra_dav/merge.c:bump_resource() calls
libsvn_client/ra.c:push_wc_prop() to store a version-url on the path "zig/bar".
The client layer silently drops the request and doesn't store the version-url.
In effect, libsvn_ra_dav has special case code and goes to some trouble to make
the request, while libsvn_client has special code to drop any such request. I
suspect that the client layer is wrong, but I don't pretend to understand the
intricacies of DAV.