The reason it's failing after upgrading from 1.1 is the check of the redirect uri was added later. This is not a recent regression so we're not going to fix it for 1.8. We can look into it for 1.9 though if you create a JIRA.
My suspicion is that we may not be able to fix it. The problem could be that DeltaSpike is invoked prior to Keycloak adapter, which results in the following behavior:
1. DeltaSpike adds "dswid"
2. Keycloak adapter redirects to login page with redirect uri that includes dswid
3. Keycloak server authenticates users and redirects back to the application (including dswid)
4. DeltaSpike removes "dswid"
5. Keycloak adapter tries to obtain token using redirect_uri param without dswid, which is rejected
Step 5 is a step that we can't remove as it's required by the OpenID Connect specification. It's there to prevent potential attacks.