Regression in typer for zio-archive/zio-connect

[WojciechMazur]

Based on failure in OpenCB for zio-archive/zio-connect Open CB logs

Compiler version

Last good release: 3.7.3-RC1-bin-20250717-fb66af2-NIGHTLY
First bad release: 3.7.3-RC1-bin-20250718-42fdd76-NIGHTLY
Bisect points to e6bf7b8 / #23532

Minimized code

import java.io.{File, IOException}
import java.net.URI
import java.nio.file.{Path, Paths}
import scala.reflect.ClassTag

trait FileConnectors { 
  def listPath(path: => Path): ZStream[Any, IOException, Path]

  final def listFile(file: => File): ZStream[Any, IOException, File] =
    for {
      path <- null.asInstanceOf[ZStream[Any, IOException, Path]]
      r    <- listPath(path).mapZIO(a => ZIO.attempt(a.toFile).refineToOrDie)
    } yield r
}

sealed trait ZIO[-R, +E, +A]
extension [R, E <: Throwable, A](self: ZIO[R, E, A])
  def refineToOrDie[E1 <: E: ClassTag]: ZIO[R, E1, A] = ???

object ZIO:
  def attempt[A](code: => A): ZIO[Any, Throwable, A] = ???
  
sealed trait ZStream[-R, +E, +A]:
  def map[B](f: A => B): ZStream[R, E, B] = ???
  def flatMap[R1 <: R, E1 >: E, B](f: A => ZStream[R1, E1, B]): ZStream[R1, E1, B]
  def mapZIO[R1 <: R, E1 >: E, A1](f: A => ZIO[R1, E1, A1]): ZStream[R1, E1, A1]

Output

-- [E007] Type Mismatch Error: /Users/wmazur/projects/scala/community-build3/example.scala:12:6 
12 |      r    <- listPath(path).mapZIO(a => ZIO.attempt(a.toFile).refineToOrDie)
   |      ^
   |      Found:    ZStream[Any, Throwable, java.io.File]
   |      Required: ZStream[Any, java.io.IOException, java.io.File]
13 |    } yield r
   |
   | longer explanation available when compiling with `-explain`
1 error found
Compilation failed

Expectation

Should compile

[Gedochao]

cc @odersky