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Summary: If the setter is used both inside and outside the effect then usually the solution is more complex and requires hoisting state up to a parent component since we can't just remove the local state. To do this, we now have 2 caches that track setState usages (not just calls) since if the effect is passed as an argument or called outside the effect the solution gets more complex which we are trying to avoid for now
React Compiler
React Compiler is a compiler that optimizes React applications, ensuring that only the minimal parts of components and hooks will re-render when state changes. The compiler also validates that components and hooks follow the Rules of React.
More information about the design and architecture of the compiler are covered in the Design Goals.
More information about developing the compiler itself is covered in the Development Guide.