Regression between nightlies with `-Zpolonius`

Code

I tried this code:

// GAT hack taken from https://docs.rs/lending-iterator/latest/lending_iterator.
pub trait LendingIterator: Sized
where
    Self: for<'item> LendingIteratorItem<'item>,
{
    fn next(&mut self) -> Option<<Self as LendingIteratorItem>::Item>;
}

/// Hack to express a GAT without GATs.
pub trait LendingIteratorItem<'item> {
    type Item;
}

pub struct Wrapper<I> {
    wrapped: Option<I>,
}

impl<'item, I> LendingIteratorItem<'item> for Wrapper<I>
where
    I: LendingIteratorItem<'item>,
{
    type Item = I::Item;
}

impl<I> LendingIterator for Wrapper<I>
where
    I: LendingIterator,
{
    fn next(&mut self) -> Option<<I as LendingIteratorItem>::Item> {
        if let Some(first) = &mut self.wrapped {
            if let Some(next) = first.next() {
                return Some(next);
            } else {
                self.wrapped = None;
            }
        }
        None
    }
}

When running this with -Zpolonius, this worked with nightly-2024-05-31. With nightly-2024-06-01, I get this error message:

error[E0506]: cannot assign to `self.wrapped` because it is borrowed
  --> src/lib.rs:34:17
   |
29 |     fn next(&mut self) -> Option<<I as LendingIteratorItem>::Item> {
   |             - let's call the lifetime of this reference `'1`
30 |         if let Some(first) = &mut self.wrapped {
   |                              ----------------- `self.wrapped` is borrowed here
31 |             if let Some(next) = first.next() {
32 |                 return Some(next);
   |                        ---------- returning this value requires that `self.wrapped` is borrowed for `'1`
33 |             } else {
34 |                 self.wrapped = None;
   |                 ^^^^^^^^^^^^ `self.wrapped` is assigned to here but it was already borrowed

Bisection

searched nightlies: from nightly-2024-05-31 to nightly-2024-06-01
regressed nightly: nightly-2024-06-01
searched commit range: https://github.com/rust-lang/rust/compare/6f3df08aadf71e8d4bf7e49f5dc10dfa6f254cb4...ada5e2c7b5427a591e30baeeee2698a5eb6db0bd
regressed commit: https://github.com/rust-lang/rust/commit/ada5e2c7b5427a591e30baeeee2698a5eb6db0bd

cargo bisect-rustc --start=2024-05-31 --end=2024-06-01

This is likely caused by https://github.com/rust-lang/rust/pull/125652, cc @amandasystems.