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I don't have much information I can provide but this looks like an unpublished bug: Bug 8436316 - PARSER UNIFICATION: CURSOR WITH HOLD IS NOT SUPPORTED
The best I can say at this time is if you have a support contract to open a Service Request with My Oracle Support for any alternatives.
I know that is not much help but it does seem like this is a known bug (but no workaround that I have seen).