Changes inside init blocks should be considered out of block modifications

compiler/light-classes/src/org/jetbrains/kotlin/asJava/KotlinCodeBlockModificationListener.kt

@@ -28,6 +28,7 @@ import com.intellij.psi.impl.PsiTreeChangePreprocessor
 import com.intellij.psi.util.PsiModificationTracker
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.isAncestor
+import org.jetbrains.kotlin.psi.psiUtil.parents
 
 /**
  * Tested in OutOfBlockModificationTestGenerated
@@ -112,6 +113,7 @@ class KotlinCodeBlockModificationListener(modificationTracker: PsiModificationTr
 
             //TODO: other types
             val blockDeclaration = KtPsiUtil.getTopmostParentOfTypes(element, *BLOCK_DECLARATION_TYPES) ?: return false
+            if (blockDeclaration.parents.any { it !is KtClassBody && it !is KtClassOrObject && it !is KtFile }) return false // should not be local declaration
 
             when (blockDeclaration) {
                 is KtNamedFunction -> {

idea/testData/codeInsight/outOfBlock/FunInInitBlock.kt

@@ -0,0 +1,9 @@
+// TRUE
+
+class A {
+    init {
+        fun f() {
+            <caret>
+        }
+    }
+}

idea/testData/codeInsight/outOfBlock/InitBlock.kt

@@ -0,0 +1,7 @@
+// TRUE
+
+class A {
+    init {
+        <caret>
+    }
+}

idea/tests/org/jetbrains/kotlin/idea/codeInsight/OutOfBlockModificationTestGenerated.java

@@ -53,6 +53,12 @@ public class OutOfBlockModificationTestGenerated extends AbstractOutOfBlockModif
         doTest(fileName);
     }
 
+    @TestMetadata("FunInInitBlock.kt")
+    public void testFunInInitBlock() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("idea/testData/codeInsight/outOfBlock/FunInInitBlock.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("FunNoBody.kt")
     public void testFunNoBody() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("idea/testData/codeInsight/outOfBlock/FunNoBody.kt");
@@ -185,6 +191,12 @@ public class OutOfBlockModificationTestGenerated extends AbstractOutOfBlockModif
         doTest(fileName);
     }
 
+    @TestMetadata("InitBlock.kt")
+    public void testInitBlock() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("idea/testData/codeInsight/outOfBlock/InitBlock.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("Object_FunNoType_Block.kt")
     public void testObject_FunNoType_Block() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("idea/testData/codeInsight/outOfBlock/Object_FunNoType_Block.kt");