Thank you all for your time. I have reported the bug to Apple. The bug number is FB19843883

Thx for your reply . I am using Xcode version 16.4 and running in a playground. Just by typing these functions in the IDE (without any calls to the functions) I get the error message in the Code Review Pane. It is a blank macOS playground running on a Mac Studio M1. The code is from Apple's Swift Programming Language (5.7). Section Functions - Function types as return types.

I am sorry about this post . I made a mistake with the formatting. I have posted an improved version

I got my new Mac Studio computer a few days ago. I installed Xcode and tried it out . I am experiencing the exact same bugs . I believe these bugs will show up on many different Macs (if not all of them) . So filing a bug report and trouble shooting will just be a waste of time and effort .