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There doesn't seem to be a changelog for it, a diff could be run on the sources to find what has changed since OS3.1. Judging by the autodocs there are no new features.
Fixes are certainly possible, but the priority of doing that is low, as using V40.1 instead is an easy workaround.
It is conceivable that the bug is actually in DPaint rather than iffparse.library.
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