diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
index 1173b3759df..eef0b3aa019 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
@@ -36820,6 +36820,12 @@ public class DiagnosticCompilerTestFE10TestdataTestGenerated extends AbstractDia
                 runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/inferenceFromLambdaReturnType.kt");
             }
 
+            @Test
+            @TestMetadata("k2StubTypeLeak.kt")
+            public void testK2StubTypeLeak() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt");
+            }
+
             @Test
             @TestMetadata("resolveUsualCallWithBuilderInference.kt")
             public void testResolveUsualCallWithBuilderInference() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
index a1c90efee80..04a36c218f3 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
@@ -36820,6 +36820,12 @@ public class LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated
                 runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/inferenceFromLambdaReturnType.kt");
             }
 
+            @Test
+            @TestMetadata("k2StubTypeLeak.kt")
+            public void testK2StubTypeLeak() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt");
+            }
+
             @Test
             @TestMetadata("resolveUsualCallWithBuilderInference.kt")
             public void testResolveUsualCallWithBuilderInference() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
index 89be1368d04..630da5e58f8 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
@@ -36820,6 +36820,12 @@ public class FirLightTreeOldFrontendDiagnosticsTestGenerated extends AbstractFir
                 runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/inferenceFromLambdaReturnType.kt");
             }
 
+            @Test
+            @TestMetadata("k2StubTypeLeak.kt")
+            public void testK2StubTypeLeak() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt");
+            }
+
             @Test
             @TestMetadata("resolveUsualCallWithBuilderInference.kt")
             public void testResolveUsualCallWithBuilderInference() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index 8424dbfcdfa..9dd028cad70 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -36916,6 +36916,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
                 runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/inferenceFromLambdaReturnType.kt");
             }
 
+            @Test
+            @TestMetadata("k2StubTypeLeak.kt")
+            public void testK2StubTypeLeak() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt");
+            }
+
             @Test
             @TestMetadata("resolveUsualCallWithBuilderInference.kt")
             public void testResolveUsualCallWithBuilderInference() throws Exception {
diff --git a/compiler/fir/providers/src/org/jetbrains/kotlin/fir/resolve/calls/FirReceivers.kt b/compiler/fir/providers/src/org/jetbrains/kotlin/fir/resolve/calls/FirReceivers.kt
index e471e0099c9..b8a11d8f8f9 100644
--- a/compiler/fir/providers/src/org/jetbrains/kotlin/fir/resolve/calls/FirReceivers.kt
+++ b/compiler/fir/providers/src/org/jetbrains/kotlin/fir/resolve/calls/FirReceivers.kt
@@ -105,10 +105,12 @@ sealed class ImplicitReceiverValue<S : FirBasedSymbol<*>>(
     @RequiresOptIn
     annotation class ImplicitReceiverInternals
 
-    @OptIn(ImplicitReceiverInternals::class)
     @Deprecated(level = DeprecationLevel.ERROR, message = "Builder inference should not modify implicit receivers. KT-54708")
     fun updateTypeInBuilderInference(type: ConeKotlinType) {
-        updateTypeFromSmartcast(type)
+        this.type = type
+        receiverExpression = receiverExpression(boundSymbol, type, contextReceiverNumber)
+        implicitScope =
+            type.scope(useSiteSession, scopeSession, FakeOverrideTypeCalculator.DoNothing, requiredPhase = FirResolvePhase.STATUS)
     }
 
     /*
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/FirBuilderInferenceSession.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/FirBuilderInferenceSession.kt
index 13fb95a2cb5..fb9b8cdfc1d 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/FirBuilderInferenceSession.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/FirBuilderInferenceSession.kt
@@ -241,6 +241,7 @@ class FirBuilderInferenceSession(
         val stubTypeSubstitutor = FirStubTypeTransformer(substitutor)
         lambda.transformSingle(stubTypeSubstitutor, null)
 
+        // TODO: Builder inference should not modify implicit receivers. KT-54708
         for (receiver in lambdaImplicitReceivers) {
             @Suppress("DEPRECATION_ERROR")
             receiver.updateTypeInBuilderInference(substitutor.substituteOrSelf(receiver.type))
diff --git a/compiler/testData/codegen/box/inference/builderInference/kt51988.kt b/compiler/testData/codegen/box/inference/builderInference/kt51988.kt
index d47e24cd968..cf3af2230b9 100644
--- a/compiler/testData/codegen/box/inference/builderInference/kt51988.kt
+++ b/compiler/testData/codegen/box/inference/builderInference/kt51988.kt
@@ -1,4 +1,3 @@
-// IGNORE_LEAKED_INTERNAL_TYPES: KT-54708
 // WITH_STDLIB
 
 import kotlin.experimental.ExperimentalTypeInference
diff --git a/compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt b/compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt
new file mode 100644
index 00000000000..401955bd070
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt
@@ -0,0 +1,20 @@
+// FIR_IDENTICAL
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+fun test_1() {
+    sequence {
+        constrain(this)
+        yieldAll(mk()) // Will be completed in partial mode, due to builder inference
+
+        Unit
+    }
+}
+
+fun constrain(t: Inv<String>) {}
+
+fun <U> sequence(block: Inv<U>.() -> Unit): U = null!!
+
+interface Inv<T> {
+    fun <S: T> yieldAll(seq: Inv<S>)
+}
+
+fun <K> mk(): K = TODO()
diff --git a/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.fir.kt b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.fir.kt
index 49460a455d1..2ec35f51572 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.fir.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.fir.kt
@@ -1,4 +1,3 @@
-// IGNORE_LEAKED_INTERNAL_TYPES: KT-54708
 // !OPT_IN: kotlin.RequiresOptIn
 // !DIAGNOSTICS: -UNUSED_PARAMETER
 // ISSUE: KT-35684
diff --git a/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.kt b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.kt
index 1af4850a359..cde719d0e78 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt35684.kt
@@ -1,4 +1,3 @@
-// IGNORE_LEAKED_INTERNAL_TYPES: KT-54708
 // !OPT_IN: kotlin.RequiresOptIn
 // !DIAGNOSTICS: -UNUSED_PARAMETER
 // ISSUE: KT-35684
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 819bd96ddc5..f07c1b7b892 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -37688,6 +37688,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/inferenceFromLambdaReturnType.kt");
             }
 
+            @Test
+            @TestMetadata("k2StubTypeLeak.kt")
+            public void testK2StubTypeLeak() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/builderInference/k2StubTypeLeak.kt");
+            }
+
             @Test
             @TestMetadata("resolveUsualCallWithBuilderInference.kt")
             public void testResolveUsualCallWithBuilderInference() throws Exception {