It should never be possible to refer to a local class or member class using a binary name, because that name is not in scope (JLS 6.3).

Compile this:

public class Declarations {

    public static class Inner {}
    
    static void m() {
        class Local {}
    }
}

Then compile this (with previously-generated classes on the class path):

public class Uses {

    Declarations$Inner y;
    Declarations$1Local x;
    
    static class SubInner extends Declarations$Inner {}
    static class SubLocal extends Declarations$1Local {}
    
    Object o2 = new Declarations$Inner() {};
    Object o1 = new Declarations$1Local() {};

}

I get 2 errors in 9 (b130), 2 errors in 8 (u101), and 4 errors in 7 (u51). There should be 6 errors.

If I try compiling any single line at a time (commenting out the rest), I get no error.

If I reorder the declarations, I get different behaviors, but never all the expected errors.