Display blocks on localized taxonomy term page doesn't work

I am having exactly the same problem with 7.x-3.0-beta6.

It took some time to figure this out but the problem lays in the following:

/**
 * Implementation of hook_entity_prepare_view().
 */
function context_entity_prepare_view($prepare, $entity_type) {
  if ($entity_type === 'taxonomy_term' && count($prepare) === 1) {
    $term = reset($prepare);
    if ($term === menu_get_object('taxonomy_term', 2) && $plugin = context_get_plugin('condition', 'taxonomy_term')) {
      $plugin->execute($term, 'view');
    }
  }
}

The context is only attached when the $term object meets the menu_get_object value. In my case the menu_get_object function returns the following:

This will be compared with:

As you can see the term object that is provided to the hook contains the translated name. The object fetched with menu_get_object is not translated. I would suggest not to check on the entire object, but only on the term id. The code is only executed on the taxonomy entity so the ID should be unique for this entity.

I applied a patch to add this to the context module.

Forgot to set it to 'needs review'

Committed with commit 16aa5aeed85626b3f189316ef2717f6a2d982d15. Thanks for the bug report and patch.