Mathematica: GOTCHA: The Module/With system (especially under rewriting when nested) can leave variables with a trailing '$' suffix, which may cause name clashes because the variables (Expressions) are available later outside the scope of the Module/With!

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This is not in any sense a BUG, it is a well documented and fully explained language implementation feature, but it may cause very difficult to catch problems if you are not aware of it. Read especially under How Modules Work.
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