Infinite loop when running interactive process with native WinIO manager

I recently tried running a build of Cryptol with the new native Windows IO manager enabled, but I ran into an infinite loop that is not present when using the POSIX-based IO manager. To reproduce the infinite loop, do the following on a Windows machine:

1. Download Z3 from https://github.com/Z3Prover/z3/releases/download/z3-4.8.14/z3-4.8.14-x64-win.zip and extract it.

2. Compile the following minimized example:

   module Main (main) where
   
   import System.IO (Handle, hClose, hGetLine, hFlush, hPutStrLn)
   import System.Process (CreateProcess(..), ProcessHandle, StdStream(..), createProcess, proc, waitForProcess)
   
   main :: IO ()
   main = do
     (in_h, out_h, err_h, ph) <- startProcess "z3" ["-smt2", "-in"]
   
     let doCmd cmd = do
           hPutStrLn in_h cmd
           hFlush in_h
           line <- hGetLine out_h
           putStrLn line
     doCmd "(set-option :print-success true)"
     doCmd "(set-option :produce-models true)"
     doCmd "(set-option :pp.decimal true)"
     doCmd "(set-option :global-declarations true)"
     doCmd "(get-info :error-behavior)"
     doCmd "(exit)"
   
     hClose in_h
     hClose out_h
     hClose err_h
     print =<< waitForProcess ph
   
   -- | Start a process connected to this one via pipes.
   startProcess ::
     FilePath {-^ Path to executable -} ->
     [String] {-^ Command-line arguments -} ->
     IO (Handle, Handle, Handle, ProcessHandle)
     {-^ process stdin, process stdout, process stderr, process handle -}
   startProcess path args =
     do let create_proc
               = (proc path args)
                 { std_in  = CreatePipe
                 , std_out = CreatePipe
                 , std_err = CreatePipe
                 , create_group = False
                 , cwd = Nothing
                 , delegate_ctlc = True
                 }
        createProcess create_proc >>= \x -> case x of
          (Just in_h, Just out_h, Just err_h, ph) -> return (in_h, out_h, err_h, ph)
          _ -> fail $ unlines $
                  [ "startProcess"
                  , "Failed to exec: " ++ show path
                  , "With the following arguments:"
                  ] ++ args

   With:

   $ ghc-9.2 Main.hs -rtsopts

   (Note that GHC 9.0 is also sufficient to trigger the bug.)

3. First, run the program with the POSIX-based IO manager:

   $ $env:Path = "$env:USERPROFILE\Software\z3-4.8.14-x64-win\bin;" + $env:Path 
   $ ./Main.exe +RTS --io-manager=posix -RTS
   success
   success
   success
   success
   (:error-behavior continued-execution)
   success
   ExitSuccess

   This is the expected behavior of the program.

4. Finally, run the program with the native WinIO manager:

   $ ./Main.exe +RTS --io-manager=native -RTS
   success
   # infinite loop

   After printing out a single success, the program will infinitely loop. If you Ctrl-C at this point, you'll get some interesting errors depending on where in the program you interrupt. I've seen the following happen:

   • Main.exe: schedule: re-entered unsafely.
        Perhaps a 'foreign import unsafe' should be 'safe'?

   • Main.exe: internal error: TSO object (0000000000a33c71) entered!
         (GHC version 9.2.2 for x86_64_unknown_mingw32)
         Please report this as a GHC bug:  https://www.haskell.org/ghc/reportabug

   • Access violation in generated code when reading 0xffffffffffffffff
     
      Attempting to reconstruct a stack trace...
     
        Frame        Code address
      * 0x214db30    0x1902cf0 C:\Users\winferno\Documents\Hacking\Haskell\Main.exe+0x1502cf0
      * 0x214db38    0x22fedd0
      * 0x214db40    0x7fffe3596098 C:\Windows\System32\USER32.dll+0x96098
      * 0x214db48    0x22fe450
      * 0x214db50    0x22fedd0
      * 0x214db58    0x6f0064006e0069
      * 0x214db60    0x73005c00730077
      * 0x214db68    0x65007400730079

   • Segmentation fault