The same symbol can name both a lexical variable and a dynamic variable, but never in the same lexical environment.
In the following example, the symbol x is used, at different times, as the name of a lexical variable and as the name of a dynamic variable.
(let ((x 1)) ;Binds a special variable X (declare (special x)) (let ((x 2)) ;Binds a lexical variable X (+ x ;Reads a lexical variable X (locally (declare (special x)) x)))) ;Reads a special variable X => 3
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