fix

packages/svelte/src/compiler/phases/3-transform/server/transform-server.js

@@ -2218,7 +2218,8 @@ export function server_component(analysis, options) {
 		});
 	}
 
-	// If the component binds to a child, we need to put the template in a loop and repeat until bindings are stable
+	// If the component binds to a child, we need to put the template in a loop and repeat until legacy bindings are stable.
+	// We can remove this once the legacy syntax is gone.
 	if (analysis.uses_component_bindings) {
 		template.body = [
 			b.let('$$settled', b.true),
@@ -2267,6 +2268,8 @@ export function server_component(analysis, options) {
 		props.push(b.init(alias ?? name, b.id(name)));
 	}
 	if (props.length > 0) {
+		// This has no effect in runes mode other than throwing an error when someone passes
+		// undefined to a binding that has a default value.
 		template.body.push(b.stmt(b.call('$.bind_props', b.id('$$props'), b.object(props))));
 	}
 

packages/svelte/src/internal/server/index.js

@@ -588,8 +588,8 @@ export function sanitize_slots(props) {
 }
 
 /**
- * If the prop has a fallback and is bound in the parent component,
- * propagate the fallback value upwards.
+ * Legacy mode: If the prop has a fallback and is bound in the
+ * parent component, propagate the fallback value upwards.
  * @param {Record<string, unknown>} props_parent
  * @param {Record<string, unknown>} props_now
  */

packages/svelte/tests/snapshot/samples/svelte-element/_expected/server/index.svelte.js

@@ -11,6 +11,5 @@ export default function Svelte_element($$payload, $$props) {
 	$$payload.out += `${anchor}`;
 	if (tag) $.element($$payload, tag, () => {}, () => {});
 	$$payload.out += `${anchor}`;
-	$.bind_props($$props, { tag });
 	$.pop();
 }