Why can a WideString not be used as a function return value for interop?

In regular Delphi functions, the function return is actually a parameter passed by reference, even though syntactically it looks and feels like an ‘out’ parameter. You can test this out like so (this may be version dependent):

function DoNothing: IInterface;
begin
  if Assigned(Result) then
    ShowMessage('result assigned before invocation')
  else
    ShowMessage('result NOT assigned before invocation');
end;

procedure TestParameterPassingMechanismOfFunctions;
var
  X: IInterface;
begin
  X := TInterfaceObject.Create;
  X := DoNothing; 
end;

To demonstrate call TestParameterPassingMechanismOfFunctions()

Your code is failing because of a mismatch between Delphi and C++’s understanding of the calling convention in relation to the passing mechanism for function results. In C++ a function return acts like the syntax suggests: an out parameter. But for Delphi it is a var parameter.

To fix, try this:

function TestWideString: WideString; stdcall;
begin
  Pointer(Result) := nil;
  Result := 'TestWideString';
end;