dir: minor refactoring / clean-up

Narrow the scope of the `nested_repo` variable and conditional return
statement to the block where the variable is set.

Signed-off-by: Goss Geppert <ggossdev@gmail.com>
Reviewed-by: Elijah Newren <newren@gmail.com>
Signed-off-by: Junio C Hamano <gitster@pobox.com>

dir.c

@@ -1861,7 +1861,7 @@ static enum path_treatment treat_directory(struct dir_struct *dir,
 	 */
 	enum path_treatment state;
 	int matches_how = 0;
-	int nested_repo = 0, check_only, stop_early;
+	int check_only, stop_early;
 	int old_ignored_nr, old_untracked_nr;
 	/* The "len-1" is to strip the final '/' */
 	enum exist_status status = directory_exists_in_index(istate, dirname, len-1);
@@ -1901,6 +1901,7 @@ static enum path_treatment treat_directory(struct dir_struct *dir,
 		 *    manually configured by the user; see t2205 testcases 1-3 for
 		 *    examples where this matters
 		 */
+		int nested_repo;
 		struct strbuf sb = STRBUF_INIT;
 		strbuf_addstr(&sb, dirname);
 		nested_repo = is_nonbare_repository_dir(&sb);
@@ -1916,12 +1917,13 @@ static enum path_treatment treat_directory(struct dir_struct *dir,
 			free(real_dirname);
 		}
 		strbuf_release(&sb);
-	}
-	if (nested_repo) {
-		if ((dir->flags & DIR_SKIP_NESTED_GIT) ||
-		    (matches_how == MATCHED_RECURSIVELY_LEADING_PATHSPEC))
-			return path_none;
-		return excluded ? path_excluded : path_untracked;
+
+		if (nested_repo) {
+			if ((dir->flags & DIR_SKIP_NESTED_GIT) ||
+				(matches_how == MATCHED_RECURSIVELY_LEADING_PATHSPEC))
+				return path_none;
+			return excluded ? path_excluded : path_untracked;
+		}
 	}
 
 	if (!(dir->flags & DIR_SHOW_OTHER_DIRECTORIES)) {