From the bash manual
The rules concerning the definition and use of aliases are somewhat confusing. Bash always reads at least one complete line of input before executing any of the commands on that line. Aliases are expanded when a command is read, not when it is executed. Therefore, an alias definition appearing on the same line as another command does not take effect until the next line of input is read. The commands following the alias definition on that line are not affected by the new alias. This behavior is also an issue when functions are executed. Aliases are expanded when a function definition is read, not when the function is executed, because a function definition is itself a compound command. As a consequence, aliases defined in a function are not available until after that function is executed. To be safe, always put alias definitions on a separate line, and do not use alias in compound commands.
The two sentences "Aliases are expanded when a function definition is read, not when the function is executed" and "aliases defined in a function are not available until after that function is executed" seem to be contrary to each other.
Can you explain what they mean respectively?