From the TASM manual:
"NEAR labels defined with the colon directive (:) are considered block-scoped
if they are located inside a procedure, and you've selected a language
interfacing convention with the MODEL statement. However, these symbols are
not truly block-scoped; they can't be defined as anything other than a near
label elsewhere in the program."
MASM's own local label syntax - declaring labels using @@ and then jumping to
the next and previous @@ using @F and @B - is obviously too limiting for any
longer function, and is not even supported by TASM unless we switch it to MASM
mode completely.
While this is indeed ugly, it only affected 16 files, which is way less than
what we would get in a TASM build without LOCALS. In comparison to having a
modern, cross-platform assembler, that really is a small price to pay.