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Can Automation for Jira cause infinite loops?
The simplest case is a rule that triggers itself like the example below but one could conceive more complex setups involving Workflow postfunctions or Scriptrunner listeners.
How does jira handle these kind of situations?
Actually, Jira Automation includes protection against such infinite loops, and will "break the loop" after 10 or 20 iterations (I don't remember the number exactly).
But yes, you'll end up with 10 or 20 extraneous comments :)
Yes, an infinite loop like that can happen. You need to add some type of condition to identify who is adding the Comment or set some type of custom field when you add the comment - but you will still need to be able to differentiate who/how the comment is added.