transaction-isolation level is not honored when changed at session level

[[email protected] ~]# mysql -A
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 5
Server version: 5.7.31-34-log Percona Server (GPL), Release 34, Revision 2e68637
Copyright (c) 2009-2020 Percona LLC and/or its affiliates
Copyright (c) 2000, 2020, Oracle and/or its affiliates. All rights reserved.
Oracle is a registered trademark of Oracle Corporation and/or its
affiliates. Other names may be trademarks of their respective
owners.
Type ‘help;’ or ‘\h’ for help. Type ‘\c’ to clear the current input statement.

mysql> use percona
Database changed

mysql> show create table checksums\G
*************************** 1. row ***************************
       Table: checksums
Create Table: CREATE TABLE `checksums` (
  `db` char(64) COLLATE utf8_unicode_ci NOT NULL,
  `tbl` char(64) COLLATE utf8_unicode_ci NOT NULL,
  `chunk` int(11) NOT NULL,
  `chunk_time` float DEFAULT NULL,
  `chunk_index` varchar(200) COLLATE utf8_unicode_ci DEFAULT NULL,
  `lower_boundary` blob,
  `upper_boundary` blob,
  `this_crc` char(40) COLLATE utf8_unicode_ci NOT NULL,
  `this_cnt` int(11) NOT NULL,
  `master_crc` char(40) COLLATE utf8_unicode_ci DEFAULT NULL,
  `master_cnt` int(11) DEFAULT NULL,
  `ts` timestamp NOT NULL DEFAULT CURRENT_TIMESTAMP ON UPDATE CURRENT_TIMESTAMP,
  PRIMARY KEY (`db`,`tbl`,`chunk`),
  KEY `ts_db_tbl` (`ts`,`db`,`tbl`)
) ENGINE=InnoDB DEFAULT CHARSET=utf8 COLLATE=utf8_unicode_ci
1 row in set (0.00 sec)

mysql> use db_test_tx_iso
Database changed

mysql> show create table test_tx_iso\G
*************************** 1. row ***************************
       Table: test_tx_iso
Create Table: CREATE TABLE `test_tx_iso` (
  `key` varbinary(742) NOT NULL,
  `version` bigint(20) NOT NULL,
  `value` mediumblob,
  `pelock` varbinary(64) DEFAULT NULL,
  PRIMARY KEY (`key`,`version`)
) ENGINE=InnoDB DEFAULT CHARSET=utf8 COLLATE=utf8_unicode_ci ROW_FORMAT=COMPRESSED KEY_BLOCK_SIZE=4
1 row in set (0.00 sec)

mysql> show global variables like 'binlog_format%';
+---------------+-------+
| Variable_name | Value |
+---------------+-------+
| binlog_format | ROW   |
+---------------+-------+
1 row in set (0.01 sec)

mysql> show global variables like 'tx_isolatio%';
+---------------+----------------+
| Variable_name | Value          |
+---------------+----------------+
| tx_isolation  | READ-COMMITTED |
+---------------+----------------+
1 row in set (0.01 sec)

mysql> show variables like 'tx_isolatio%';
+---------------+----------------+
| Variable_name | Value          |
+---------------+----------------+
| tx_isolation  | READ-COMMITTED |
+---------------+----------------+
1 row in set (0.10 sec)

mysql> select @@autocommit;
+--------------+
| @@autocommit |
+--------------+
|            1 |
+--------------+
1 row in set (0.00 sec)

mysql> REPLACE INTO `percona`.`checksums` (db, tbl, chunk, chunk_index, lower_boundary, upper_boundary, this_cnt, this_crc)  SELECT 'db_test_tx_iso', 'test_tx_iso', 1, null, null, null, COUNT(*) AS cnt, COALESCE(LOWER(CONV(BIT_XOR(CAST(CRC32(CONCAT_WS('#', CRC32(`key`), `version`, CRC32(`value`), CRC32(`pelock`), CONCAT(ISNULL(`value`), ISNULL(`pelock`)))) AS UNSIGNED)), 10, 16)), 0) AS crc  FROM `db_test_tx_iso`.`test_tx_iso`;
Query OK, 2 rows affected (0.24 sec)
Records: 1  Duplicates: 1  Warnings: 0

mysql> set session tx_isolation="REPEATABLE-READ"; set session binlog_format=STATEMENT;  REPLACE INTO `percona`.`checksums` (db, tbl, chunk, chunk_index, lower_boundary, upper_boundary, this_cnt, this_crc)  SELECT 'db_test_tx_iso', 'test_tx_iso', 1, null, null, null, COUNT(*) AS cnt, COALESCE(LOWER(CONV(BIT_XOR(CAST(CRC32(CONCAT_WS('#', CRC32(`key`), `version`, CRC32(`value`), CRC32(`pelock`), CONCAT(ISNULL(`value`), ISNULL(`pelock`)))) AS UNSIGNED)), 10, 16)), 0) AS crc  FROM `db_test_tx_iso`.`test_tx_iso`;
Query OK, 0 rows affected, 1 warning (0.01 sec)

Query OK, 0 rows affected (0.00 sec)

ERROR 1665 (HY000): Cannot execute statement: impossible to write to binary log since BINLOG_FORMAT = STATEMENT and at least one table uses a storage engine limited to row-based logging.
mysql> show variables like 'tx_isolatio%';
+---------------+-----------------+
| Variable_name | Value           |
+---------------+-----------------+
| tx_isolation  | REPEATABLE-READ |
+---------------+-----------------+
1 row in set (0.01 sec)

[[email protected] ~]# mysql -A
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 5
Server version: 5.7.31-34-log Percona Server (GPL), Release 34, Revision 2e68637
Copyright (c) 2009-2020 Percona LLC and/or its affiliates
Copyright (c) 2000, 2020, Oracle and/or its affiliates. All rights reserved.
Oracle is a registered trademark of Oracle Corporation and/or its
affiliates. Other names may be trademarks of their respective
owners.
Type ‘help;’ or ‘\h’ for help. Type ‘\c’ to clear the current input statement.

mysql> show variables like 'tx_isolatio%';
+---------------+----------------+
| Variable_name | Value          |
+---------------+----------------+
| tx_isolation  | READ-COMMITTED |
+---------------+----------------+
1 row in set (0.00 sec)

mysql> set session tx_isolation="REPEATABLE-READ"; set session binlog_format=STATEMENT;  REPLACE INTO `percona`.`checksums` (db, tbl, chunk, chunk_index, lower_boundary, upper_boundary, this_cnt, this_crc)  SELECT 'db_test_tx_iso', 'test_tx_iso', 1, null, null, null, COUNT(*) AS cnt, COALESCE(LOWER(CONV(BIT_XOR(CAST(CRC32(CONCAT_WS('#', CRC32(`key`), `version`, CRC32(`value`), CRC32(`pelock`), CONCAT(ISNULL(`value`), ISNULL(`pelock`)))) AS UNSIGNED)), 10, 16)), 0) AS crc  FROM `db_test_tx_iso`.`test_tx_iso`;
Query OK, 0 rows affected, 1 warning (0.00 sec)

Query OK, 0 rows affected (0.00 sec)

Query OK, 2 rows affected, 1 warning (0.05 sec)
Records: 1  Duplicates: 1  Warnings: 1

mysql> REPLACE INTO `percona`.`checksums` (db, tbl, chunk, chunk_index, lower_boundary, upper_boundary, this_cnt, this_crc)  SELECT 'db_test_tx_iso', 'test_tx_iso', 1, null, null, null, COUNT(*) AS cnt, COALESCE(LOWER(CONV(BIT_XOR(CAST(CRC32(CONCAT_WS('#', CRC32(`key`), `version`, CRC32(`value`), CRC32(`pelock`), CONCAT(ISNULL(`value`), ISNULL(`pelock`)))) AS UNSIGNED)), 10, 16)), 0) AS crc  FROM `db_test_tx_iso`.`test_tx_iso`;
Query OK, 2 rows affected, 1 warning (0.01 sec)
Records: 1  Duplicates: 1  Warnings: 1