Update variable precedence section with current rules

docsite/rst/playbooks2.rst

@@ -777,11 +777,11 @@ to determine which place sets the value of the variable.
 
 1.  Variables loaded from YAML files mentioned in 'vars_files' in a playbook.
 
-2.  'vars' as defined in the playbook.
+2.  facts, whether built in or custom, or variables assigned from the 'register' keyword.
 
-3.  facts, whether built in or custom, or variables assigned from the 'register' keyword.
+3.  variables passed to parameterized task include statements.
 
-4.  variables passed to parameterized task include statements.
+4.  'vars' as defined in the playbook.
 
 5.  Host variables from inventory.
 

lib/ansible/playbook/play.py

@@ -261,8 +261,9 @@ class Play(object):
             self.vars_files = [ self.vars_files ]
 
         if host is not None:
-            inject = self.playbook.SETUP_CACHE[host].copy()
+            inject = {}
             inject.update(self.playbook.inventory.get_variables(host))
+            inject.update(self.playbook.SETUP_CACHE[host])
 
         for filename in self.vars_files: