I just did this using PG 14.2:

create procedure p(a out int)
  language plpgsql
as $body$
begin
  a := 42;
end;
$body$;
  
do $body$
declare
  a constant int := 0;
begin
  call p(a);
  raise info '%', a::text;
end;
$body$;

The DO block runs without error and reports "INFO:  42". This is an unambiguous 
semantic error because "a" is declared "constant".

Is this a known issue?

Replace "a" with the literal "37" in this test:

do $body$
begin
  call p(37);
  raise info '%', a::text;
end;
$body$;

This causes the expected runtime error 42601:

procedure parameter "a" is an output parameter but corresponding argument is 
not writable.

Bt.w., error 42601 is mapped to the name "syntax_error" in PL/pgSQL. I'd say 
that this is its own distinct bug. The syntax is fine. It's a semantic error.

Notice that the test can be trivially transcribed to Oracle Database's PL/SQL 
as this SQL*Plus script:

create procedure p(a out integer)
  authid definer
as
begin
  a := 42;
end;
/
declare
  a /*constant*/ int := 0;
begin
  p(a);
  DBMS_Output.put_line('a: '||to_char(a));
end;
/

When "constant" is commented out (as presented), the anonymous block runs 
without error and outputs "a: 42". But when "constant" is uncommented, the 
attempt causes this error:

PLS-00363: expression 'A' cannot be used as an assignment target

This is the proper report of what clearly is a semantic error. PG should do the 
same.

B.t.w., this happens to be a compilation error in ORCL and not a run-time 
error. But that's an entirely different story and reflects the fundamentally 
different compilation and execution models for anonymous blocks, user-defined 
functions, and user-defined procedures between ORCL and PG.

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