If you create a symlink to a directory in the QL local-projects directory, then LispWorks will loop indefinitely when looking for *.asd files.
To reproduce (I can only try this on macOS):
- create some directory outside the 
local-projects tree, say /tmp/zzz; 
- in 
local-projects do ln -s /tmp/zzz zzz, and remove the system index file; 
(ql:list-local-systems) will now loop. 
This is fairly obviously because of some confusion around getting the contents of directories containing links to other directories: there's a lot of implementation-specific code there.  I've had a brief look at it but I don't understand it in detail yet.  Since I have LW I will try to poke at it further and work out a fix.