> The shadowing makes sense because if a local variable was moved out, then you're not really shadowing it anymore. Is my understanding of that correct?

This is kind of a philosophical corner: can you shadow something that isn't there anymore? Once you've moved out of something, if you attempt to use the old name, then you'll get a compiler error different from "no such variable", so it's still there in some sense.

Pragmatically, I think you are on the money.