Difficulties with select stanza and depending on library's version: dependency cycle

Expected Behavior

I want to depends on ppxlib's version but can't setup dependencies. Getting an error

Error: Dependency cycle between:
   %{read:../lt38.txt} at lib/dune:16
-> required by %{read:../lt38.txt} at lib/dune:16
-> required by library "fake_lt38" in _build/default/lib

Specified dune lang is 3.23 and after dune b -w you can see error above.
If you s/23/22/ you will see another error, because -w ruins thing. Restarting dune's process helps.

Also I observed with dune 3.22 that removing package stanza sometimes helps. I have not idea why and how select feature interacts with package specification

Reproduction

Reproduction project https://github.com/Kakadu/select_demo