Proposed resolution (approved by CWG 2023-01-27):

1. Change in 9.2.9.7.1 [dcl.spec.auto.general] paragraph 12 as follows:

   Return type deduction for a templated entity that is a function or function template with a placeholder in its declared type occurs when the definition is instantiated even if the function body contains a return statement with a non-type-dependent operand.

2. Change in 13.1 [temp.pre] paragraph 8 as follows:

   [Note 6: A local class, a local or block variable, or a friend function defined in a templated entity is a templated entity. —end note]
   A templated function is a function template or a function that is templated. A templated class is a class template or a class that is templated. A templated variable is a variable template or a variable that is templated.

[Accepted as a DR at the February, 2023 meeting.]

In 13.1 [temp.pre] paragraph 8, the phrase "templated entity" is defined. The derived term "templated function" is never actually defined, but is intended to apply to function templates as well as non-template members of class templates. Similarly, the phrases "templated variable" and "templated class" should be properly defined.