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The test case org.eclipse.jdt.core.tests.compiler.regression.MethodVerifyTest#test124 doesn't work if compiled and run in 1.7 mode. I end up with a StackoverFlow error. It seems to work in 1.6.
I'll take a look.
I believe this is the intended behavior deliberately brought about by the fix for bug 207935. See that code compiled with javac7 also exhibits the same symptom. Bug 207935's duplicate bug 150655 has some rationale for the expected behavior including documenting that the stack overflow is expected.
Adjusted the test to expect stack overflow error in 1.7+ modes. Search the method org.eclipse.jdt.internal.compiler.lookup.Scope.computeCompatibleMethod(MethodBinding, TypeBinding[], InvocationSite) for reference to JDK7 to see the code that triggers the different behavior.
Verified for 3.7M4 by code inspection