Control Instances better (is this a three body problem)?

When left mouse is pressed, it stores HoverBlock (which is snap to grid) position.

This code works perfectly where block turning color stops if there is a unit (using the break loop approach).

This looks like essentially the same code, but it is not because the local variable gets declared at each instance check - which resets BreakLoop back to false. So we expect correctly blues.

This works as expected as well, but the one below does not (even if you shift around the order of which repeat every instance goes first)… So is it a 3 body problem?