Checklist

• I have tried restarting my IDE and the issue persists.
• I have read the FAQ and my problem is not listed.

Tell us about your environment

• ESLint version: 8.9.0
• eslint-plugin-vue version: 8.4.1
• Node version:
• Operating System:

Please show your full configuration:

module.exports = {
 extends: [
 'plugin:vue/vue3-recommended',
 ],
 rules: {
 'no-shadow': 'error',
 },
};

What did you do?

<script>
 export function useModal() {
 const close = () => {}

 return { close }
 }
</script>
<script setup>
 function close() {

 }
</script>
<template>
 <Modal @close="close"></Modal>
</template>

What did you expect to happen?
No errors reported for the no-shadow rule.

What actually happened?

[3:11]: 'close' is already declared in the upper scope on line 10 column 12. (no-shadow)

Repository to reproduce this issue

Online Playground