Compilation error seems to suggest that *more* references are needed

Code

pub trait Trait {
    type E;
}

pub struct S<T: Trait> {
    pub v: T::E,
}

fn foo<T: Trait>(s: &mut [S<T>]) {
    let v = &s[0].v;
    let c = S { v };
    s[0] = c;
}

Current output

error[E0271]: type mismatch resolving `<T as Trait>::E == &<T as Trait>::E`
  --> src/lib.rs:11:17
   |
11 |     let c = S { v };
   |                 ^ expected `&<T as Trait>::E`, found associated type
   |
   = note:    expected reference `&_`
           found associated type `_`
help: consider constraining the associated type `<T as Trait>::E` to `&<T as Trait>::E`
   |
9  | fn foo<T: Trait<E = &<T as Trait>::E>>(s: &mut [S<T>]) {
   |                ++++++++++++++++++++++

Desired output

error[E0271]: type mismatch resolving `<T as Trait>::E == &<T as Trait>::E`
  --> src/lib.rs:11:17
   |
11 |     let c = S { v };
   |                 ^ expected `<T as Trait>::E`, found `&<T as Trait>::E`
   |
   = note:    expected associated type `_`
           found reference `&_`

Rationale and extra context

The error message seems to suggest that the compilation issue should be solved by making v "more of a reference", when in fact the opposite is needed.
This can be quite confusing.

Other cases

Rust Version

rustc 1.86.0-nightly (bf1b174e7 2025-01-28)
binary: rustc
commit-hash: bf1b174e7d0922fc549071b751ab96fc9ee9f6fe
commit-date: 2025-01-28
host: x86_64-unknown-linux-gnu
release: 1.86.0-nightly
LLVM version: 19.1.7

Anything else?

No response

Reproduce the E0271 diagnostic from the Rust code in src/lib.rs using the reported rustc 1.86.0-nightly version. Start by tracing how the compiler formats the expected and found associated types for this mismatch. Done means the diagnostic no longer suggests adding an unnecessary reference and matches the requested ordering.