It's not an answer yet...
Indeed, looks strange:
C4="A"&{1;2} D4=BYROW(C4#;LAMBDA(X;INDIRECT(X))) C7=BYROW(C4#;LAMBDA(X;X)) D7=INDIRECT(C7#)
while INDIRECT(C7) is 0.
INDIRECT(C7)
INDIRECT("A"&{1;2}) returns {#VALUE!;#VALUE!}.
INDIRECT("A"&{1;2})
{#VALUE!;#VALUE!}