Google seems to be testing a specialized local pack that looks more like the local service ads. Maybe this is a bug because the ads are not labeled or maybe Google is testing free local service listings? The local pack design looks more like local service ads and gives you the option to refine the query and location.

I received several notifications of this design yesterday, here is waht Robert Owen from Timberwise sent me:

Compare that to what I see without the refinement options:

The reason I think this is local service ads is because this was spotted by others and local SEOs said it looks like them.

They do link to local service ads, so maybe this is a bug?

Forum discussion at Twitter.