SQL & PL/SQL

Oracle 10g

Hi Gurus

I was reading one of the question from PL/SQL challenge  website https://plsqlchallenge.oracle.com/pls/apex/f?p=10000:23:114157934581224::NO::: but unable to get the exact idea.

I appreciate if someone help me out to understand code.

Sample data

set serveroutput on
/
drop table plch_stuff;
/

CREATE TABLE plch_stuff (
   id   INTEGER PRIMARY KEY,
   nm   VARCHAR2 (5) UNIQUE)
/

create or replace procedure plch_insert (
   insert_row_in IN BOOLEAN DEFAULT TRUE)
IS
begin
   IF insert_row_in
   THEN
      INSERT INTO plch_stuff VALUES (1, 'Hat');
   END IF;
END;
/
begin
   plch_insert;
   UPDATE plch_stuff SET nm = 'Hat';
   dbms_output.put_line('Last Count='||SQL%ROWCOUNT);
END;

Result

Last Count=1

But as per my understanding , result =Last Count=2 because one sql%rowcount for insert and then one for update. Please guide. Thanks

Regards

Matt