Unexpected name "fragment"

On latest master I get:
{"errors":[{"message":"resolving updateGQLSchema failed because input:5: Unexpected Name \"fragment\"\n (Locations: [{Line: 3, Column: 4}])","extensions":{"code":"Error"}}]}

with following schema:

type Test {
  hello: String!
}

fragment TestFragment on Test {
  hello
}

This must be a bug, no?

fragments are client side only.