We extend a recently introduced framework for transient compartmentalization of replicators with selection dynamics, by including the effect of mutations and noise in such systems. In the presence of mutations, functional replicators (ribozymes) are turned into non-functional ones (parasites). We evaluate the phase diagram of a system undergoing transient compartmentalization with selection.The system can exhibit either coexistence of ribozymes and parasites, or a pure parasite phase.If the mutation rate exceeds a certain level called the error threshold, the only stable phase is the pure parasite one. Transient compartmentalization with selection can relax this error treshold with respect to a bulk quasispecies case, and even allow ribozymes to coexist with faster growing parasites.In order to analyze the role of noise, we also introduce a model for the replication of a template by an enzyme. This model admits two regimes: a diffusion limited regime which generates a high noise, and a replication limited regime, which generates a low noise at the population level. Based on this model, we find that, since the ribozyme dynamics belongs to the replication limited regime, the effects of noise on the phase diagram of the system are mostly negligible. Our results underlines the importance of transient compartmentalization for prebiotic scenarios, and may have implications for directed evolution experiments.