No, if you try this with the various optimization levels you can see that it's not a bug; without optimization it doesn't happen. Instead what seems plausible to me is that some optimization pass analyses the possible values for "Do", which is tractable, since it's static and can't be aliased. Because the value must be initialized before Do() the optimizer seems to unconditionally use the only possible initialization, even if it is unreachable.

With -O1 you can see that this part already happens. With optimization cranked further up it just inlines EraseAll, and EraseAll ceases to exist as a separate symbol. This is possible since Do is static and not aliased. Meanwhile NeverCalled continues to exist as a retq, since it is not static.