diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-capture-returned-alias.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-capture-returned-alias.expect.md
new file mode 100644
index 0000000000..14300c14e9
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-capture-returned-alias.expect.md
@@ -0,0 +1,77 @@
+
+## Input
+
+```javascript
+// Here, element should not be memoized independently of aliasedElement, since
+// it is captured by fn.
+// AnalyzeFunctions currently does not find captured objects.
+//  - mutated context refs are declared as `Capture` effect in `FunctionExpression.deps`
+//  - all other context refs are left as Unknown. InferReferenceEffects currently demotes
+//    them to reads
+function CaptureNotMutate(props) {
+  const idx = foo(props.x);
+  const element = bar(props.el);
+
+  const fn = function () {
+    const arr = { element };
+    return arr[idx];
+  };
+  const aliasedElement = fn();
+  mutate(aliasedElement);
+  return aliasedElement;
+}
+
+```
+
+## Code
+
+```javascript
+// Here, element should not be memoized independently of aliasedElement, since
+// it is captured by fn.
+// AnalyzeFunctions currently does not find captured objects.
+//  - mutated context refs are declared as `Capture` effect in `FunctionExpression.deps`
+//  - all other context refs are left as Unknown. InferReferenceEffects currently demotes
+//    them to reads
+function CaptureNotMutate(props) {
+  const $ = React.unstable_useMemoCache(7);
+  const c_0 = $[0] !== props.x;
+  let t0;
+  if (c_0) {
+    t0 = foo(props.x);
+    $[0] = props.x;
+    $[1] = t0;
+  } else {
+    t0 = $[1];
+  }
+  const idx = t0;
+  const c_2 = $[2] !== props.el;
+  let t1;
+  if (c_2) {
+    t1 = bar(props.el);
+    $[2] = props.el;
+    $[3] = t1;
+  } else {
+    t1 = $[3];
+  }
+  const element = t1;
+  const c_4 = $[4] !== element;
+  const c_5 = $[5] !== idx;
+  let aliasedElement;
+  if (c_4 || c_5) {
+    const fn = function () {
+      const arr = { element };
+      return arr[idx];
+    };
+    aliasedElement = fn();
+    mutate(aliasedElement);
+    $[4] = element;
+    $[5] = idx;
+    $[6] = aliasedElement;
+  } else {
+    aliasedElement = $[6];
+  }
+  return aliasedElement;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-capture-returned-alias.js b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-capture-returned-alias.js
new file mode 100644
index 0000000000..0bc0187f9a
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-capture-returned-alias.js
@@ -0,0 +1,18 @@
+// Here, element should not be memoized independently of aliasedElement, since
+// it is captured by fn.
+// AnalyzeFunctions currently does not find captured objects.
+//  - mutated context refs are declared as `Capture` effect in `FunctionExpression.deps`
+//  - all other context refs are left as Unknown. InferReferenceEffects currently demotes
+//    them to reads
+function CaptureNotMutate(props) {
+  const idx = foo(props.x);
+  const element = bar(props.el);
+
+  const fn = function () {
+    const arr = { element };
+    return arr[idx];
+  };
+  const aliasedElement = fn();
+  mutate(aliasedElement);
+  return aliasedElement;
+}
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-mutate-shadowed-object.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-mutate-shadowed-object.expect.md
new file mode 100644
index 0000000000..042e24d871
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-mutate-shadowed-object.expect.md
@@ -0,0 +1,42 @@
+
+## Input
+
+```javascript
+function Component() {
+  const x = {};
+  {
+    const x = [];
+    const fn = function () {
+      mutate(x);
+    };
+    fn();
+  }
+  return x; // should return {}
+}
+
+```
+
+## Code
+
+```javascript
+function Component() {
+  const $ = React.unstable_useMemoCache(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = {};
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  const x = t0;
+
+  const x_0 = [];
+  const fn = function () {
+    mutate(x);
+  };
+  fn();
+  return x;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-mutate-shadowed-object.js b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-mutate-shadowed-object.js
new file mode 100644
index 0000000000..4971f05bd7
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-mutate-shadowed-object.js
@@ -0,0 +1,11 @@
+function Component() {
+  const x = {};
+  {
+    const x = [];
+    const fn = function () {
+      mutate(x);
+    };
+    fn();
+  }
+  return x; // should return {}
+}
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-primitive.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-primitive.expect.md
new file mode 100644
index 0000000000..484d364e08
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-primitive.expect.md
@@ -0,0 +1,39 @@
+
+## Input
+
+```javascript
+// writing to primitives is not a 'mutate' or 'store' to context references,
+// under current analysis in AnalyzeFunctions.
+// <unknown> $23:TFunction = Function @deps[<unknown>
+//   $21:TPrimitive,<unknown> $22:TPrimitive]:
+
+function Component() {
+  let x = 40;
+
+  const fn = function () {
+    x = x + 1;
+  };
+  fn();
+  return x;
+}
+
+```
+
+## Code
+
+```javascript
+// writing to primitives is not a 'mutate' or 'store' to context references,
+// under current analysis in AnalyzeFunctions.
+// <unknown> $23:TFunction = Function @deps[<unknown>
+//   $21:TPrimitive,<unknown> $22:TPrimitive]:
+
+function Component() {
+  const fn = function () {
+    x = x + 1;
+  };
+  fn();
+  return 40;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-primitive.js b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-primitive.js
new file mode 100644
index 0000000000..824b269bd5
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-primitive.js
@@ -0,0 +1,14 @@
+// writing to primitives is not a 'mutate' or 'store' to context references,
+// under current analysis in AnalyzeFunctions.
+// <unknown> $23:TFunction = Function @deps[<unknown>
+//   $21:TPrimitive,<unknown> $22:TPrimitive]:
+
+function Component() {
+  let x = 40;
+
+  const fn = function () {
+    x = x + 1;
+  };
+  fn();
+  return x;
+}
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-shadowed-primitive.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-shadowed-primitive.expect.md
new file mode 100644
index 0000000000..8a917699fd
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-shadowed-primitive.expect.md
@@ -0,0 +1,41 @@
+
+## Input
+
+```javascript
+function Component() {
+  const x = {};
+  {
+    let x = 56;
+    const fn = function () {
+      x = 42;
+    };
+    fn();
+  }
+  return x; // should return {}
+}
+
+```
+
+## Code
+
+```javascript
+function Component() {
+  const $ = React.unstable_useMemoCache(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = {};
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  const x = t0;
+
+  const fn = function () {
+    x = 42;
+  };
+  fn();
+  return x;
+}
+
+```
+      
\ No newline at end of file
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-shadowed-primitive.js b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-shadowed-primitive.js
new file mode 100644
index 0000000000..66edf6b9f3
--- /dev/null
+++ b/compiler/forget/src/__tests__/fixtures/compiler/_bug.lambda-reassign-shadowed-primitive.js
@@ -0,0 +1,11 @@
+function Component() {
+  const x = {};
+  {
+    let x = 56;
+    const fn = function () {
+      x = 42;
+    };
+    fn();
+  }
+  return x; // should return {}
+}