Interesting. Is this case also an example, or is it a non-feature?
class C t where
type K t :: Type
type T t :: K t -> Type
m :: t -> T t a
Ah, that’s quite different! We should do strongly-connected-component analysis of the associated-type declarations within a single class declaration…. but we don’t currently do that. No difficulty in principle, I think.
You could open a ticket. (Do include a link to this email thread and to #12088)