Incorrect behaviour of "no-unused-vars" rule when variable defined outside of the loop

[markelog]

What version of ESLint are you using?
2.9.0

What parser (default, Babel-ESLint, etc.) are you using?
default

Please show your full configuration:

{
    "rules": {
        "no-unused-vars": "error"
    }
}

What did you do? Please include the actual source code causing the issue.
run eslint on the following code -

(function( obj ) {
    var name;

    for ( name in obj ) {
        return false;
    }
    return true;
});

What did you expect to happen?
No errors

What actually happened? Please include the actual, raw output from ESLint.

2:6  error  'name' is defined but never used  no-unused-vars

[mysticatea]

Thank you for this issue.

Closing as a duplicate of #2342.
Please track that issue.