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This is obviously deliberate, and I see similar code (without the posixly_correct condition) in bash 1.05 from 1990.
According to Wikipedia, POSIX began in 1988, and the initial
release of bash was in 1989, just a year later. Obviously the
authors thought that expanding literal '~'s in $PATH was a good
idea at the time, and it's not suprising that they didn't pay much
attention to POSIX. It would have been nice if they'd documented it.