In documentation for a language such as Smalltalk/80, which can
contain external parsing language code in its own code, I could
imagine this coming up fairly frequently.
Currently, I have a case where Smalltalk produces Perl produces Shell
Scripts. (There's a reason, really.) Documenting this could require
3 levels of <code></code>. (I have two levels in the documentation
currently, which is behind a firewall of sorts.)
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