I might be reading this wrong, but I don’t agree with the first NOTE on the sequences document page.

Note: Variables need to be created with different names, even if used in different Scopes.

I am able to use the same variable name as long as it is created in different scopes.
Do you agree this documentation should be changed?

I think I agree. But, variables need to be different names if one is in an outer scope while the other is in an inner scope, but it shows a warning icon.