However, if I use VASP 6.2 then for LCALCEPS I get 3.29291 and with LEPSILON I get 5.886592.
In VASP 5.4.4, if I use LCALCEPS I get 5.711869 and if I use LEPSILON I get 5.886591 which is pretty good agreement (especially given that these two methods can have different convergence criterion in terms of k-points, etc). The plane-wave cutoff is 450 eV and ISMEAR = 0 with SIGMA = 0.005. We are calculating the dielectric tensor of the primitive cell of diamond with the PBE potential on an 8x8x8 Gamma centered k-point grid. While working with a student who is learning to calculate dielectric tensors (static, not frequency dependent) to use in eventual defect calculations, I found an odd behavior in VASP version 6.2 vs 5.4.4 and was able to reproduce it on two different computing centers.