Paket local does not work with new csproj format

Description

Given a project using the new csproj format. When a paket.local file is enabled, pointing one of the dependencies to a local package, the new csproj still uses the non-local package.

Repro steps

A repro repository is uploaded at https://github.com/KDISim/PaketNewCsProjIssue

The repo consists of two solutions. Use the solution under source/MyTests/MyTests,sln.
The solution has two csproj projects, one using the old project format, and one using the new csproj format. Each project as a single unit test, both these tests are identical.
Compile this, and you see the two unit tests going green.

Then rename the paket.local.txt to paket.local, do a paket restore, and a full rebuild.
The local package has a change that should cause both tests to go red.
But now you should see that only the test in the old csproj project goes red, the one in the new csproj stays green - indicating it doesn't use the local package, but still uses the non-local.

If I check the csproj files using the MSBuild Structured log viewer, it also looks like the new csproj format doesn't evaluate to use the local package.

Start with the uploaded PaketNewCsProjIssue repository and the solution under source/MyTests/MyTests.sln. Compare paket restore and MSBuild Structured Log Viewer evaluation for the old and new csproj projects after renaming paket.local.txt to paket.local. Done means both identical unit tests use the local package and turn red after a full rebuild.