It has been properly fixed, but the fix isn't retroactive. If the permissions broke before the upgrade then the permissions would need to be reapplied before being able to view the album again.
So those albums affected by the bug are still invisible and require manual action. Imho this is unacceptable and I consider that the original bug report must be tagged as "Partial-Fix" instead of "Fixed".
Chris could you please properly fix the bug? i.e. write code to find those albums affected by the bug (it looks possible) and then automatically perform your own suggestion:
I would recommend setting them to "Owner only". That should allow the person to see the album, from there he can choose whatever privacy settings he wants.