This code was probably written by a C++ programmer that used common C++ idiom to write C++/CLI. It is quite wrong, passing a reference to tracking handle is only possible if the handle is stored on the stack. It cannot work if the passed List<> reference is stored in a field of an object on the heap, the garbage collector can move it and make the pointer invalid. The compiler will catch it and generate an error. The ^ is already a reference, no additional reference is needed.
Without the reference, the const keyword doesn't make a lot of sense anymore either. Not that it ever did before, the CLR cannot enforce it. Not that this mattered much here, this code could not be called from any other .NET language. They won't generate a pointer to the tracking handle.
Just fix it, there's little point in keeping bad code like this:
void foo(IList<int>^ list ) { ... }
Example of code that shows that the reference cannot work:
using namespace System;
using namespace System::Collections::Generic;
ref class Test {
public:
IList<int>^ lst;
void foo(IList<int> const &list) {}
void wontcompile() {
foo(lst); // C3699
IList<int>^ okay;
foo(okay);
}
};