It will be good if Localbitcoins is removed, but that is not what should be called bug as it has nothing to do with the wallet function and performance.
The Localbitcoins code is actually still there in the source code, but I don't think it's actually displayed anywhere. I also saw a bunch of other exchanges that were (apparently) never listed on the Electrum settings' Fiat page.
Anyway, I have created a pull request to remove the code:
https://github.com/spesmilo/electrum/pull/8437EDIT: Done and dusted, the PR has been merged after only 1 hour. There is no more localbitcoins code left in Electrum.