Question: What is the special evaluation rules of "MVshortcut"?

In my view, <x || (1 .. 2); y || (1 .. 2); 1 $ 2> should return a Matrix without any error messages; however, 

<x || (1 .. 2); y || (1 .. 2); 1 $ 2>; # Arguments are shielded??? 
Error, (in Matrix) this entry is too wide or too narrow: 1

If I understand right, each argument of a function is evaluated in turn (unless the uneval modifier is used). 
So, why is it not equivalent to <x1, x2; y1, y2; 1, 1>

 

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