Fix condition when to compare a captured ref

compiler/src/dotty/tools/dotc/core/TypeComparer.scala

@@ -1438,15 +1438,16 @@ class TypeComparer(@constructorOnly initctx: Context) extends ConstraintHandling
          */
         def compareCaptured(arg1: TypeBounds, arg2: Type) = tparam match {
           case tparam: Symbol =>
-            if (leftRoot.isStable || (ctx.isAfterTyper || ctx.mode.is(Mode.TypevarsMissContext))
-                && leftRoot.member(tparam.name).exists) {
+            if (leftRoot.isStable || ctx.isAfterTyper || ctx.mode.is(Mode.TypevarsMissContext))
+                && leftRoot.isValueType
+                && leftRoot.member(tparam.name).exists
+            then
               val captured = TypeRef(leftRoot, tparam)
               try isSubArg(captured, arg2)
               catch case ex: TypeError =>
                 // The captured reference could be illegal and cause a
                 // TypeError to be thrown in argDenot
                 false
-            }
             else if (v > 0)
               isSubType(paramBounds(tparam).hi, arg2)
             else if (v < 0)

tests/pos/i12141.scala

@@ -0,0 +1,47 @@
+case class Test1(); case class Test2(); case class Test3();
+case class Test4(); case class Test5(); case class Test6();
+
+sealed abstract class DSL {
+  def cont [P1 >: this.type <: DSL, P2 <: DSL](continuation: => P2) =
+    Continue[P1, P2](() => this, () => continuation)
+}
+case class Continue [P1 <: DSL, P2 <: DSL](p1: () => P1, p2: () => P2) extends DSL
+
+trait More[-A] {}
+case class Out[C <: More[A], A](c: C, v: A) extends DSL
+case class Nop() extends DSL
+
+val decision1:Boolean = true;
+val decision2:Boolean = false;
+
+type P[
+ChanA <: More[Test1|Test2],
+ChanB <: More[Test3|Test4],
+ChanC <: More[Test5|Test6]] =
+ ((Out[ChanA,Test1] Continue ((Out[ChanB,Test3] Continue Nop)|(Out[ChanB,Test4] Continue Nop))) //works if remove first 'Continue Nop'
+ | (Out[ChanA,Test2] Continue ((Out[ChanC,Test5] Continue Nop)|(Out[ChanC,Test6] Continue Nop))))
+
+
+def p( chanA: More[Test1|Test2], chanB: More[Test3|Test4], chanC: More[Test5|Test6])
+ :P[chanA.type,chanB.type,chanC.type] ={
+      if(decision1){
+         Out(chanA,Test1()) cont {
+            if(decision2){
+               Out(chanB,Test3()) cont Nop() //works if replace with 'Out(chanB,Test3())'
+            }
+            else{
+               Out(chanB,Test4()) cont Nop()
+            }
+         }
+      }
+      else{
+         Out(chanA,Test2()) cont {
+            if(decision2){
+               Out(chanC,Test5()) cont Nop()
+            }
+            else{
+               Out(chanC,Test6()) cont Nop()
+            }
+         }
+      }
+   }