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Both Studio 12.5 and 12.6 give error on {} initialization of objects for classes with explicit constructor

struct Class {
    explicit Class() { }
};
Class returning()
{
    Class c{};
    return c;
}

Error message:

 line 7: Error: Could not find a match for Class::Class({initializer list}) needed in returning()

I find it a bug, explicit constructor should disallow Class object = {}; but not direct default initialization.

When constructor is default (i.e. explicit Class() = default;) the error disappears.