The function hudson.Util.replaceMacro(String, ...) resolves recursively properties, such as:
PATH=path1:$PATH
into
PATH=path1:path1:path1:path1:path1:path1:path1:path1:path1:path1:path1:path1:path1:path1:path1: etc.

I encountered it when setting variables for slave and running multijob with envinject - the variables were calculated and passed to the child jobs and resulted in running out of memory. More precisely with this variable:
LD_LIBRARY_PATH=$ORACLE_HOME/lib:$LD_LIBRARY_PATH

I would expect Jenkins to resolve the R-value and push it in L-value, not to resolve it over and over again.

Note: I didn't set the variable like this, I suppose it was meant to take $LD_LIBRARY_PATH from Linux server settings and append $ORACLE_HOME/lib

Note2: Version 1.580.3 ran with those variables fine.