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I noticed this issue originally as deriving-compat-0.5.7's test suite fails to compile on HEAD. Here is a minimized version of the test suite that compiles successfully with optimizations on GHC 8.8.1 and earlier:

{-# LANGUAGE MagicHash #-}
{-# LANGUAGE TypeFamilies #-}
module Bug where

import Control.Monad
import GHC.Arr (Ix(..))
import GHC.Base (getTag)
import GHC.Exts

data family D
data instance D = MkD
  deriving (Eq, Ord, Show)

instance Ix D where
  range (a, b) =
    let a# = getTag a
        b# = getTag b
    in map (\(I# i#) -> tagToEnum# i# :: D)
           (enumFromTo (I# a#) (I# b#))
  unsafeIndex (a, _) c =
    let a# = getTag a
        c# = getTag c
        d# = c# -# a#
    in I# d#
  inRange (a, b) c =
    let a# = getTag a
        b# = getTag b
        c# = getTag c
    in tagToEnum# (c# >=# a#) && tagToEnum# (c# <=# b#)

shouldBe :: (Eq a, Show a) => a -> a -> IO ()
shouldBe x y =
  unless (x == y) $ fail $ show x ++ " is not equal to " ++ show y

ixLaws :: (Ix a, Show a) => a -> a -> a -> IO ()
ixLaws l u i = do
    inRange (l,u) i                 `shouldBe` elem i (range (l,u))
    range (l,u) !! index (l,u) i    `shouldBe` i
    map (index (l,u)) (range (l,u)) `shouldBe` [0..rangeSize (l,u)-1]
    rangeSize (l,u)                 `shouldBe` length (range (l,u))

dIsLawfulIx :: IO ()
dIsLawfulIx = ixLaws MkD MkD MkD

However, it panics on GHC HEAD:

$ ~/Software/ghc5/inplace/bin/ghc-stage2 Bug.hs -O -fforce-recomp
[1 of 1] Compiling Bug              ( Bug.hs, Bug.o )
ghc-stage2: panic! (the 'impossible' happened)
  (GHC version 8.9.0.20191023:
        emitPrimOp: handled above in cgOpApp

Some notes:

• The use of optimization -O is critical to triggering the bug.

• The panic goes away if D is an ordinary data type instead of a data family.

• The code in the hand-written Ix instance is very similar to the code you would get for a derived Ix instance, but with one key difference: the hand-written code uses getTag instead of a function that does something like this:

  dTag :: D -> Int#
  dTag MkD = 0#

  If you replace all uses of getTag with dTag, then the panic goes away. As a consequence, you won't trigger the panic if you derive the Ix instance.