This looks like just a disconnect between an old feature (the ability to click a link to get that file directly into the device sim) and the compression of files that is now (and has been for some time) standard. As you said, this is probably a long-standing bug. The parser error message suggests that the compressed file is being handed to it directly, rather than being uncompressed first. If you download the file and paste its contents into the device sim, it works fine.
Probably not even worth the effort to fix, TBH. I would just remove that link.