Here's a minimal example that demonstrates the problem:
\documentclass[12pt,a4paper]{article}
\begin{document}
\cite{osdi02:modelnet}
\bibliographystyle{plain}
\bibliography{osdi,break}
\end{document}
And the xtx file:
@include osdi
@extend {
DBLP:conf/osdi/VahdatYWMKCB02 = osdi02:modelnet
}
Compiling this breaks with:
DBLP:conf/osdi/VahdatYWMKCB02 is extended but never defined.
Removing the @include osdi OR the osdi from the \bibliography line fixes the problem.
This severely limits how I organize my bibliography for large collections.