Cyclic definition in XSD schema produces an error

Assume the following example:

<?xml version='1.0' encoding='UTF-8'?>
<xs:schema xmlns:xs='http://www.w3.org/2001/XMLSchema'
    xmlns:myns='http://example.com/schemas/myns'
    targetNamespace='http://example.com/schemas/myns'
    elementFormDefault='unqualified'>

    <xs:complexType name='A'>
        <xs:sequence>
            <xs:element name="error" type="AList" />
        </xs:sequence>
    </xs:complexType>

    <xs:complexType name='AList'>
        <xs:sequence>
            <xs:element name="values" type='A' minOccurs='0' maxOccurs='unbounded' />
        </xs:sequence>
    </xs:complexType>

</xs:schema>

Will give src-resolve: Cannot resolve the name 'AList' to a(n) 'type definition' component.xsd(src-resolve)

Reproduce the reported XSD example and trace the XML schema type-resolution path that emits the src-resolve error. Done means the cyclic A and AList definitions resolve without that error.