Compiler hang with GAT in impl where clause

The following code causes the compiler to hang:

pub trait Apply {
    type Output<A>: Apply;
}

pub trait Trait {}

impl<A: Apply> Trait for A where <A as Apply>::Output<A>: Trait {}

Using -Znext-solver causes this code to compile without errors.

Adding #![recursion_limit = "16"] to the top produces the following compile error:

error[E0275]: overflow evaluating the requirement `<<<<<<<... as Apply>::Output<...> as Apply>::Output<...> as Apply>::Output<...> as Apply>::Output<...> as Apply>::Output<...> as Apply>::Output<...> as Apply>::Output<...>: Trait`
 --> src/lib.rs:9:59
  |
9 | impl<A: Apply> Trait for A where <A as Apply>::Output<A>: Trait {}
  |                                                           ^^^^^
  |
  = help: consider increasing the recursion limit by adding a `#![recursion_limit = "32"]` attribute to your crate (`foo`)
note: required for `<... as Apply>::Output<...>` to implement `Trait`
 --> src/lib.rs:9:16
  |
9 | impl<A: Apply> Trait for A where <A as Apply>::Output<A>: Trait {}
  |                ^^^^^     ^                                ----- unsatisfied trait bound introduced here
  = note: 14 redundant requirements hidden
  = note: required for `<A as Apply>::Output<A>` to implement `Trait`
  = note: the full name for the type has been written to '/Users/timch/foo/target/debug/deps/foo-890f97683d406f94.long-type-13481938346205059950.txt'
  = note: consider using `--verbose` to print the full type name to the console

For more information about this error, try `rustc --explain E0275`.

Changing type Output<A>: Apply; to type Output<A>; makes the program compile without errors.

Meta

rustc --version --verbose:

rustc 1.96.0-nightly (cf7da0b72 2026-03-30)
binary: rustc
commit-hash: cf7da0b7277cad05b79f91b60c290aa08a17a6f0
commit-date: 2026-03-30
host: aarch64-apple-darwin
release: 1.96.0-nightly
LLVM version: 22.1.2

Start with the reproducer in src/lib.rs, especially the GAT bound and impl where clause at line 9, and compare the default solver with -Znext-solver. Confirm the hang and the recursion-limit overflow, then verify that the compiler terminates with appropriate behavior without requiring the bound to be removed.