Circular reference misdetection (introduced after 3.6.3)

[orzFly]

TypeScript Version: 3.7.2

Search Terms: 7022, referenced directly or indirectly in its own initializer

Code

let items: string[] | null = null;
items = items || [];

for (const row of []) {
  const item = items.find(() => true); // ERROR
  const result = item ? true: false    // ERROR

  switch (result) {

  }
}

Expected behavior:
No error & warnings.

const item: string | undefined
const result: boolean

Actual behavior:

'item' implicitly has type 'any' because it does not have a type annotation and is referenced directly or indirectly in its own initializer.(7022)
'result' implicitly has type 'any' because it does not have a type annotation and is referenced directly or indirectly in its own initializer.(7022)

const item: any
const result: any

Playground Link: Link

It works in 3.6.3 and fails in 3.7.2.

Related Issues:
I think this is not related to #33191 since this introduced after 3.6.3.

[orzFly]

More simplified:

Playground link

const flag: boolean = false;

for (const row of []) {
  const result = flag ? true: false
  switch (result) { }
}

Expected:
const result: boolean
const result: false should be ideal as well.

Actual:

const result: any
'result' implicitly has type 'any' because it does not have a type annotation and is referenced directly or indirectly in its own initializer.(7022)

[ahejlsberg]

This is fixed by #35000.