Incorrect stepping in switch

Consider debugging the code with jdk 17:

public class DebuggingSwitch {

    public static void main(String[] args) throws Exception {
        String returnValue;
        try {

            System.out.println("Enter the try catch block");
            throw new Exception("Error");
        } catch(Exception e) {
            returnValue = switch(e.getMessage()) { // breakpoint here and start stepping over
                case "Error" -> {
                    System.out.println("Error exception"); // 1 stop - ok
                    yield "Error"; // 2 stop - ok
                }
                case "Warning" -> {
                    System.out.println("Warning exception");
                    yield "Warning";
                }
                default -> {
                    System.out.println("Default exception");
                    System.out.println("Another default exception");
                    throw e; // 2 stop - NOT OK
                }
            };
        }
    }
}

Set a breakpoint at the switch line inside the catch block, then step over several times. On the third stop it will stop at the line with "throw e;" inside the default block which is definitely not executed, which is really misleading.

Originally the problem was reported here: https://youtrack.jetbrains.com/issue/IDEA-316450