Error: forward reference extends over definition of value only when inside a block

[scabug]

Here is the block of code to reproduce the problem:

object TestIt extends App { 

 { // if you remove this bracket block, the compiler does not complain
   def memoize1[A, B](f: A => B): Function1[A, B] = new Function1[A, B] {
     val results = collection.mutable.Map.empty[A, B]
     def apply(in: A) = results.getOrElseUpdate(in, f(in))
   }

   val maxLatency1: Function1[(Int, Int), Int] = memoize1 { t: (Int, Int) =>
     val (s, d) = t
     if (s == d) 0
     else {
       maxLatency1((1, 2))
     }
   }
 } // end of block

}

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Imported From: https://issues.scala-lang.org/browse/SI-8551?orig=1
Reporter: Pierre Schaus (pschaus)
Affected Versions: 2.11.0

[scabug]

@retronym said:
This is in line with the language spec.

object Test {
  def foo {
   val foo: Any = foo
   val bar: Any = () = bar
  }
}

You can make maxLatency a lazy val to make this allowed.

 The scope of a name introduced by a declaration or definition is the whole statement
 sequence containing the binding. However, there is a restriction on forward references in blocks: 
  In a statement sequence s1 . . . sn making up a block, if a simple name in si refers to an entity
  defined by s j where j >= i , then for all sk between and including si and sj,
    * sk cannot be a variable definition.
    * If sk is a value definition, it must be lazy.