Does a state's failure to abide by its own statutory commands on habeas constitute a violation of the Fourteenth Amendment?

As to due process, the panel says that "the failure of a state to abide by its own statutory commands may implicate a liberty interest protected by the Fourteenth Amendment against arbitrary deprivation by a state." Id. at 1300. This is in direct conflict with Estelle v. McGuire, --- U.S. ----, 112 S.Ct. 475, 116 L.Ed.2d 385 (1991), which held that a state court's determination that a defendant is not covered by a particular state law rule is not cognizable on federal habeas, id. at ----, 112 S.Ct. at 480, and does not give rise to a due process claim, id. at ----, 112 S.Ct. at 482. Is there a way to reconcile this apparent conflict? The panel sayeth naught. ²