I have not been able to figure this out. It is not a major issue for us at the moment because the restore we are doing is just for testing. But it would be good to figure out why this happened. It must have something to do with permanlinks since as I indicated above when you change to the default permalink instead of post name it works.
My guess is that it may also have something to do with the fact that we are restoring into a different domain.
One of the people I work with posted this issue as a general question in the troubleshooting forum a couple of days ago but did not receive any response. I also noticed that this issue has been raised several times over the last few years and I didn't see any resolution to the problem.