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Using break in a loop inside except* gives an error #10766

Description

@McAwesome123

Environment data

  • Pylance version: v2025.7.1
  • OS and version: Windows 10 22H2
  • Python version (& distribution if applicable, e.g. Anaconda): 3.12.4

Code Snippet

	except* TimeoutError as exc:
		x = 10
		while True:
			x -= 1
			if x < 0:
				break
			...

Expected behavior

The code works fine as far as I can tell, so this shouldn't be an error.

Actual behavior

Gives "break" is not allowed in an "except*" block

Logs

2025-08-04 00:51:44.664 [info] Native locator: Refresh started
2025-08-04 00:51:44.701 [info] > pyenv which python
2025-08-04 00:51:44.701 [info] cwd: .
2025-08-04 00:51:44.713 [info] Python interpreter path: .\.venv\Scripts\python.exe
2025-08-04 00:51:44.727 [info] Native locator: Refresh finished in 263 ms
2025-08-04 00:51:45.746 [info] Starting Pylance language server.
2025-08-04 00:51:54.855 [info] Discover tests for workspace name: fractalrhomb - uri: d:\GitHub\fractalrhomb\cogs\splash.py
2025-08-04 00:51:59.432 [info] Discover tests for workspace name: fractalrhomb - uri: d:\GitHub\fractalrhomb\cogs\splash.py

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