[FIR] Fix inference based on recursive upper bound

#KT-59012 Fixed

compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/InferenceUtils.kt

@@ -47,8 +47,9 @@ fun ConstraintStorage.buildNotFixedVariablesToNonSubtypableTypesSubstitutor(
     )
 }
 
-fun TypeSystemInferenceExtensionContext.hasRecursiveTypeParametersWithGivenSelfType(selfTypeConstructor: TypeConstructorMarker) =
-    selfTypeConstructor.getParameters().any { it.hasRecursiveBounds(selfTypeConstructor) }
+fun TypeSystemInferenceExtensionContext.hasRecursiveTypeParametersWithGivenSelfType(selfTypeConstructor: TypeConstructorMarker): Boolean =
+    selfTypeConstructor.getParameters().any { it.hasRecursiveBounds(selfTypeConstructor) } ||
+            isK2 && selfTypeConstructor is CapturedTypeConstructorMarker && selfTypeConstructor.supertypes().any { hasRecursiveTypeParametersWithGivenSelfType(it.typeConstructor()) }
 
 fun TypeSystemInferenceExtensionContext.isRecursiveTypeParameter(typeConstructor: TypeConstructorMarker) =
     typeConstructor.getTypeParameterClassifier()?.hasRecursiveBounds() == true
@@ -79,4 +80,4 @@ fun NewConstraintSystemImpl.registerTypeVariableIfNotPresent(
     if (typeVariable.freshTypeConstructor(this) !in builder.currentStorage().allTypeVariables.keys) {
         builder.registerVariable(typeVariable)
     }
-}
+}

compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/ResultTypeResolver.kt

@@ -10,6 +10,7 @@ import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.resolve.calls.NewCommonSuperTypeCalculator
 import org.jetbrains.kotlin.resolve.calls.inference.components.TypeVariableDirectionCalculator.ResolveDirection
 import org.jetbrains.kotlin.resolve.calls.inference.extractTypeForGivenRecursiveTypeParameter
+import org.jetbrains.kotlin.resolve.calls.inference.hasRecursiveTypeParametersWithGivenSelfType
 import org.jetbrains.kotlin.resolve.calls.inference.model.*
 import org.jetbrains.kotlin.types.AbstractTypeApproximator
 import org.jetbrains.kotlin.types.AbstractTypeChecker
@@ -349,6 +350,10 @@ class ResultTypeResolver(
         if (upperConstraints.isNotEmpty()) {
             val upperType = computeUpperType(upperConstraints)
 
+            if (isK2 && hasRecursiveTypeParametersWithGivenSelfType(upperType.typeConstructor())) {
+                return upperType
+            }
+
             return typeApproximator.approximateToSubType(
                 upperType,
                 TypeApproximatorConfiguration.InternalTypesApproximation

compiler/resolution.common/src/org/jetbrains/kotlin/types/AbstractTypeApproximator.kt

@@ -476,6 +476,15 @@ abstract class AbstractTypeApproximator(
             val argumentType = newArguments[index]?.getType() ?: argument.getType()
 
             val capturedType = argumentType.lowerBoundIfFlexible().originalIfDefinitelyNotNullable().asCapturedType()
+
+            // When capturing recursive types with self upper bounds, their super types can contain captured types.
+            // In approximateCapturedType, we check if the super/subtypes of captured types need approximation even if captured types
+            // themselves don't need approximation, and will land here.
+            // To support this case, we also don't want to approximate captured types here if the configuration says so.
+            if (capturedType != null && isK2 && !conf.capturedType(ctx, capturedType)) {
+                continue@loop
+            }
+
             val capturedStarProjectionOrNull =
                 capturedType?.typeConstructorProjection()?.takeIf { it.isStarProjection() }