If you attempt to publish a solution containing an entity with calculated fields, you may receive the following error message:

Field foo_calculated cannot be created or updated because field foo_used_in_condition_or_formula contains an additional formula that uses a parent record.

The wording is misleading and confusing because field foo_used_in_condition_or_formula is not a calculated field at all. The error is documented as:

Which does not make it even remotely clearer.

What the error is trying to say is that there is a child entity with calculated fields that refer to foo_calculated field. Solution, as it turns out, is very simple:

If your entity contains a calculated field that is used in formulas of calculated fields of another (child) entity, make sure to include this child entity in your solution