This was fixed in Keyboard Maestro 8.0.2.
Thanks for the quick fix Peter.
Here's my revised Macro that confirms the fix:
Note that I renamed my Local Variables to have a prefix of "Local"
Example Results
##Macro Library Local Variable Calculation Test KM8 @Test
####DOWNLOAD:
<a class="attachment" href="/uploads/default/original/2X/5/5da704d5803810539f12a95d3d0d7b4325a02edb.kmmacros">Local Variable Calculation Test KM8 @Test.kmmacros</a> (3.8 KB)
**Note: This Macro was uploaded in a DISABLED state. You must enable before it can be triggered.**
---
<img src="/uploads/default/original/2X/0/0ad1b262122df62d5af53d63c89db30a3a57a843.png" width="550" height="794">