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Crash when a RETURNING clause refers to a table in UPDATE FROM
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Seems fine to me.

Might I also suggest documenting that only columns from the target table may be referenced in the returning clause (that is, the table that is being inserted into or updated and not other tables such as the additional tables listed in the from clause in the case of UPDATE ... FROM ...).

If that condition were to be lifted (in the case of an UPDATE ... FROM ...) then the change in restriction can be documented at that time.