When it doubt, RTFM.
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Because local variables are in scope only during stored program execution, references to them are not permitted in prepared statements created within a stored program. Prepared statement scope is the current session, not the stored program, so the statement could be executed after the program ends, at which point the variables would no longer be in scope. For example, SELECT ... INTO local_var cannot be used as a prepared statement. This restriction also applies to stored procedure and function parameters.