Weird catchError behavior

[waterplea]

I was exploring stream restoration with catchError and I just wanted to notify the stream that it was broken and restored. Here's what I came up with:

server$
  .pipe(
    catchError((_, stream) =>
      stream.pipe(
        map((value, index) => index ? value : 'Connection restored\n' + value),
        startWith('Connection lost')
      )
    ),
    scan((acc, value) => acc + '\n' + value)
  )

While on the surface it looks right, if I put console.log in there, it starts to show something like a recursion going deeper each cycle. Here's the StackBlitz:
https://stackblitz.com/edit/rxjs-wbuhya

This got me worried about memory and such so I thought I'd bring it up here for a little discussion. Is this expected behavior? Is it ok? Should I do what I do differently?