Bug: 'exhaustive-deps' lint rule warns that "Outer scope values" aren't valid when a hook is inside a function

[finnp]

React version: 18.1.0

Steps To Reproduce

Inside a functional component, an inner function with a dependency on value from an outer function triggers the warning, "Outer scope values like '....' aren't valid dependencies because mutating them doesn't re-render the component."

Here's the crux of the problem

const List = (props: IListProps) => {
  const { items } = props;

  // Using the useMemo hook here doesn't complain, e.g. -
  // const names = useMemo(() => items.map(item => item.name), [items]);

  // Using the useMemo hook inside a function complains
  const names = useItemNames();

  return (
    <>
      <h2>There are {items.length} items in the list</h2>
      <section>
        {names.map(name => (
          <div>{name}</div>
        ))}
      </section>
    </>
  );

  ////////////////////

  function useItemNames() {
    // es-lint warns here: Outer scope values like 'items' aren't valid dependencies 
    // because mutating them doesn't re-render the component
    return useMemo(() => items.map(item => item.name), [items]);
  }
};

Link to code example: https://codesandbox.io/s/custom-hook-repro-3wfly

The current behavior

The eslint rule will complain about unneccessary dependencies.

The expected behavior

The eslint rule shouldn't be triggered.

This is a reopen and copy of #17060 by @gerrod

[sadiki-o]

i was just messing with the sandbox you posted early, can you check this one if it does the job you want it to do:
sandbox.
i believe useMemo is used to store results of heavy computations, and when the dependancy array changes it re-run the callback you provide it with. Also i see no reason to use useMemo inside another function.

[github-actions]

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[finnp]

I would need to check