When a mesh has an armature modifier on it, and the bones of the modifier are both rotated and scaled, strange deformations occur that are not expected.

See in the attached blend file. When you play back the animation, the bones first rotate to bend the mesh, and then they uniformally scale to a smaller size. One would expect the mesh to also uniformally scale to a smaller size, but instead the mesh expands (relative to the size of the bones) in a strange way. Similarly--though more subtly--when the bones are scaled non-uniformally, one would expect the mesh to also scale in the same way as the bones, but similar strange deformations occur as in the uniform case.

This is very problematic for rigs that need to allow the scaling of bones (e.g. for flexy rigs, squash-and-stretch, etc.)

I'm not sure if this is an inherent limitation of dual quaternion skinning. If it is, then oh well. But if it is not, then it needs to be fixed.