I must admit that I find it counter-intuitive that HLASM would store the
double ampersands in the variable, rather than undouble them during the
assignment. But well - as long as the results are consistent - I really
shouldn't need to care.

As far as I know, it's always been that way.  Sometimes such difficulties
are due to the fact that SETC expressions involving paired ampersands
result in two ampersands -- they aren't paired, while apostrophes are.
That is,

&X    SETC   '&&'''

is three characters long, not two.

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