fix corner case in `functions` (#4824)

fixes #4823

2 files changed, 31 insertions, 0 deletions

diff --git a/lib/compress.js b/lib/compress.js
index 423e1345..f3e40f7e 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -6226,6 +6226,7 @@ merge(Compressor.prototype, {
                             && var_defs[sym.id] == 1
                             && sym.assignments == 0
                             && value instanceof AST_LambdaExpression
+                            && !is_arguments(sym)
                             && !is_arrow(value)
                             && assigned_once(value, sym.references)
                             && can_declare_defun(value)
diff --git a/test/compress/functions.js b/test/compress/functions.js
index f0e0d50f..4d4cb66d 100644
--- a/test/compress/functions.js
+++ b/test/compress/functions.js
@@ -5991,3 +5991,33 @@ issue_4788: {
     }
     expect_stdout: "PASS"
 }
+
+issue_4823: {
+    options = {
+        functions: true,
+        reduce_vars: true,
+        unused: true,
+    }
+    input: {
+        console.log(typeof function() {
+            {
+                function f() {}
+                var arguments = f();
+                function g() {}
+                var arguments = g;
+            }
+            return f && arguments;
+        }());
+    }
+    expect: {
+        console.log(typeof function() {
+            {
+                function f() {}
+                arguments = f();
+                var arguments = function() {};
+            }
+            return f && arguments;
+        }());
+    }
+    expect_stdout: "function"
+}