Operating system: Linux (Debian bullseye)
Broken: at least 2.79b up to current master (2.83.10)
Worked: I didn't test anything older than 2.79b, but that version didn't work already
Short description of error
The following only really applies to local transform selected in the limit rotation constraint,
and therefore only for Bones and Objects that have a parent. Objects without a parent seem
to disable the constraint entirely instead of using world space (also since 2.79b and probably before).
The Limit Rotation constraint with "For Transform" turned on will not apply the
limit on the transform in special cases. If the XYZ Euler is at one of the rotations that
can be expressed in multiple ways, it will prefer one over the other internally before
the limiting is done. This is very counter intuitive and should be considered a bug
when the checkbox says for transform and also works like that for most cases.
To add on top of that, if the rotation mode is not XYZ Euler it really doesn't work.
It will still use some internal rotation and clamp that, while the numbers in the rotation
transform UI will go wild. At least if for transform is toggled on, it should use the
selected rotation representation.
Exact steps for others to reproduce the error
Open up the attached blend file with the armature and tweak the Y-Rotation of the selected Bone.
You should see a sudden unexpected jump.