The formula works just fine, but it violates one of the golden rules of DAX code: you always prefix a column reference with its table name, and you never use the table name when referencing a measure. Therefore, when reading DAX code, [Sales Amt] is a measure reference, whereas ‘Product'[Sales Amt] is a column reference.
Nevertheless, in our DAX example ProdSalesAmt is a column of a temporary table (SalesByProduct) created by the FilteredSalesAmount measure. As such, ProdSalesAmt is a temporary column that does not originate from any column in the model and does not have a table name you can use as a prefix. This situation creates ambiguity in the code: it is not easy to discriminate between a column reference and a measure reference. Therefore, the code is harder to read and more error prone.
Read on for their standard, which is pretty easy to follow.