### Explanation
The code has an issue with counter initialization. The line `{% assign counter %}` is incorrect syntax and will cause an error. In Liquid, the `assign` tag requires both a variable name and a value. Without a value assignment, the counter variable remains undefined and cannot be incremented.
The correct implementation would be to initialize the counter with a value:
```liquid
{% assign counter = 0 %}
{% for product in collection.products %}
{% assign counter = counter | plus: 1 %}
{{ product.title }}
{% endfor %}
```
Reference: [Liquid Iteration](https://shopify.dev/api/liquid/tags/iteration)