diff --git a/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.fir.txt b/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.fir.txt
index 9ae7e321020..e6a1987a053 100644
--- a/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.fir.txt
+++ b/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.fir.txt
@@ -18,6 +18,12 @@ FILE: reassignOfNonMemberProperty_lateInitialization.kt
             this@R|/Some|.R|/Some.x| = String(ok)
             this@R|/Some|.R|/Some.x| = String(error)
             this@R|/Some|.R|/z| = String(error)
+            local final fun foo(): R|kotlin/Unit| {
+                this@R|/Some|.R|/Some.x| = String(error)
+                this@R|/Some|.R|/Some.y| = String(error)
+                this@R|/Some|.R|/z| = String(error)
+            }
+
         }
 
         public final val a: R|kotlin/String| = this@R|/Some|.R|kotlin/run|<R|Some|, R|kotlin/String|>(<L> = run@fun R|Some|.<anonymous>(): R|kotlin/String| <inline=Inline, kind=EXACTLY_ONCE>  {
diff --git a/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.kt b/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.kt
index 0fd4fdf1bd0..f573b2bc7c3 100644
--- a/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/cfa/reassignOfNonMemberProperty_lateInitialization.kt
@@ -12,6 +12,12 @@ class Some {
         x = "ok"
         <!VAL_REASSIGNMENT!>x<!> = "error"
         <!VAL_REASSIGNMENT!>z<!> = "error"
+
+        fun foo() {
+            <!CAPTURED_MEMBER_VAL_INITIALIZATION!>x<!> = "error" // VAL_REASSIGNMENT also ok (or even better?)
+            <!CAPTURED_MEMBER_VAL_INITIALIZATION!>y<!> = "error"
+            <!VAL_REASSIGNMENT!>z<!> = "error"
+        }
     }
 
     val a: String = run {
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/cfg/ControlFlowGraphBuilder.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/cfg/ControlFlowGraphBuilder.kt
index 98dec4910c9..dabd55efa6e 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/cfg/ControlFlowGraphBuilder.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/dfa/cfg/ControlFlowGraphBuilder.kt
@@ -152,7 +152,7 @@ class ControlFlowGraphBuilder {
             else -> throw IllegalArgumentException("Unknown function: ${function.render()}")
         }
 
-        val localFunctionNode = runIf(function.symbol.callableId.isLocal && bodyBuildingMode) {
+        val localFunctionNode = runIf(function is FirSimpleFunction && function.isLocal && bodyBuildingMode) {
             createLocalFunctionDeclarationNode(function).also { addNewSimpleNode(it) }
         }
         val enterNode = enterGraph(function, name, ControlFlowGraph.Kind.Function) {