I've noticed this a while ago but forgot to post a bug report for it.
According to LORE,
Healing Circle for bards heals 1d8+1 HP per caster level and, from what I can gather from the description - being as short as it is for bards, this is independent of the bard's or target's deity.
I have noticed that Freldo cannot heal rofireinites with the spell as, according to LORE,
Ilsare sees Rofirein as an unfriendly god - as per clerical usage of the spell.
Is this intentional? If so, I'll post a bug report on the LORE thread.
Also, Freldo has used the censor of arcane devotion in the past - if this is the cause, perhaps there should be a mention that bardic healing circle changes after using the censor.