If you allow shadowing, then you rule out the possibility of the value being used later. This prevents accidental use (later on, in a location you didn't intend to use it) and helps readability by reducing the number of variables you must keep track of at once.

If you ban shadowing, then you rule out the possibility of the same name referring to different things in the same scope. This prevents accidental use (of the wrong value, because you were confused about which one the name referred to) and helps readability by making it easier to immediately tell what names refer to.