[Compiler Bug]: `Invariant: [InferMutationAliasingEffects] Expected value kind to be initialized` on passing reference to current function to other function

What kind of issue is this?

• React Compiler core (the JS output is incorrect, or your app works incorrectly after optimization)
• babel-plugin-react-compiler (build issue installing or using the Babel plugin)
• eslint-plugin-react-hooks (build issue installing or using the eslint plugin)
• react-compiler-healthcheck (build issue installing or using the healthcheck script)

Link to repro

https://playground.react.dev/#N4Igzg9grgTgxgUxALhAgHgBwjALgAgDMoA7OXASwhPwFkBPAYQgFtsSETcAKASn2AAdGvhgJcsGgB4AEggA28iAHUc8gCb5qjeRTgBrALzA++QwD4Bw-DaIQI3YmUrV8AIwCGMU0JG38FIT43LQeuAAWAHQwHiTqrKaWkQCs-L7+-p4AXnwA3NYZAL74CmAIVn4ZAI5Q6NyeMLz5lTaFBa1NBYXFAPTmwm0kIAA0IHDUhBQA5igg6fg9PeNsFPJhVCS0EOoIyPiCIB6KBwMj4OEQAO4AklwIMCRHYCiETwiFQA

Repro steps

1: give react compiler this code

export function MyComponent() {
  return <HelloWorld onClick={() => {
    foo(function bar() {
      if (Math.random() > .5) {
        baz();
      } else {
        qux(bar);
      }
    });
  }} />
}

2: notice the following error

Found 1 error:

Invariant: [InferMutationAliasingEffects] Expected value kind to be initialized

<unknown> bar$5.

   5 |         baz();
   6 |       } else {
>  7 |         qux(bar);
     |             ^^^ this is uninitialized
   8 |       }
   9 |     });
  10 |   }} />

How often does this bug happen?

Every time

What version of React are you using?

the version in playground.react.dev

What version of React Compiler are you using?

the version in playground.react.dev

Start with the linked React Compiler playground and reproduce the error using the JavaScript snippet. Trace the [InferMutationAliasingEffects] failure at the qux(bar) reference, then verify that the same repro no longer reports an uninitialized value or invariant failure.