This as it should be?
Yes. Don’t forget that {{Foo}} always sets the currentTiddler variable; it is short for <$tiddler tiddler="Foo"><$transclude $tiddler="Foo"/></$tiddler>.
<$transclude tiddler=Foo/>
The transclude widget always transcludes what <<currentTiddler>> is at that moment.
The “tiddler” parameter in that widget is the “template tiddler” to use when transcluding the “current” tiddler.
So your transclusion is transcluding Bar, using Foo as a template.
So the content of Foo is rendered when Bar is rendered, but Bar is the current tiddler. So the content of Foo is rendered in that context (current tiddler = Bar).
i.e. <$transclude tiddler=Foo/> gives the same result as {{ || Foo }} (well, the transclude widget allows choosing a “mode”, block or inline)
The messy thoughts in my head about all of that: [tw5] Heads up: Transclude Widget does not behave as per documentation
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