[Compiler Bug]: Upgrading from e552027-20250112 to 27714ef-20250124 no longer optimizes

[SimenB]

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-compiler (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/#N4Igzg9grgTgxgUxALhHCA7MAXABAYQgFsAHZXAJQQEM5sA6AMX1wF5cAKASjYD5dgAHQy5c6LHgDaYBABsEdBABMAqjJhgANLhnYAynIXZlahBoC6bXFBl7s1YwB4YNJZlkBPXKZgB5GACCJACWPpLmvBzhXADcwsKi4jjW6gCSSmBWMvKKqupg9ETUJBwcNmY8rPzlMPTBSrHxImKYyXjs3HwCuAmiLRK41DAwVuFxGL2iAGYQIxxJeNlGJuq4EFMpZulgPELNfYPD9CQ2ABYcS7k+jfu4AL6TuC7YsBPND2+iz6+4GFCysnGd3GIDuQA

Repro steps

No reproduction steps required - the playground shows the error.

https://github.com/facebook/react/pull/32093/files#diff-20b95f808e27819de316464ff5819940614b11b694deb9f1c4fecf39dff6b6e4R1607

As a workaround I've just extracted the function (in our real app it's a queryFn to react-query) outside of the component and pass it the arguments instead, so we no longer loop inside the component itself.

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For future reference (for when this is fixed and the playground no longer shows an error), this is the current result:

How often does this bug happen?

Every time

What version of React are you using?

N/A

What version of React Compiler are you using?

27714ef-20250124