To elaborate on that slightly:
inout makes sense to me in a function: the function is metaphorically a box, or maybe a room with a door, and the value both goes in and out of it. We already use that “function is a contained space” metaphor with other terms: “input / output,” “pass a value in to a function,” “return from a function” (as if it is a place one visits), etc. But in an inout local var or loop, what is the value metaphorically going in and out of? The scope, I guess? The variable? It seems metaphorically murky. It’s not a term I’d immediately intuit if I encountered it in the wild without prior knowledge, and it’s one I’d find moderately awkward to explain to students.
As I said, I can’t think of a better word that means “reference that points back to a value whose lifecycle is not tied to this particular variable declaration,” so I can live with it! But if there are any brilliant ideas out there, now is the time.