Literal string redundantly abstracted over a type variable

Summary

(I have no idea what's happening, but GHC asks me to report a bug)

Steps to reproduce

sorry, didn't have time to minimize

git clone https://git.imn.htwk-leipzig.de/waldmann/autotool.git
cd autotool
git submodule init
git submodule update
curl https://ghc.gitlab.haskell.org/head.hackage/cabal.project >> cabal.project.local
cabal update
cabal build -w /opt/ghc/ghc-9.10.0.20240313/bin/ghc transport

Observed behaviour

...
<no location info>: error:
    panic! (the 'impossible' happened)
  GHC version 9.10.0.20240313:
	corePrepPgm
  Case lzy-ctx _x_r3oD :: forall {atom}. Addr#
               [GblId, Unf=OtherCon []]
               _x_r3oD = \ (@atom_a2ge) -> "missing"#
  Call stack:
      CallStack (from HasCallStack):
        callStackDoc, called at compiler/GHC/Utils/Panic.hs:190:37 in ghc-9.10.0.20240313-inplace:GHC.Utils.Panic
        pprPanic, called at compiler/GHC/CoreToStg/Prep.hs:2050:16 in ghc-9.10.0.20240313-inplace:GHC.CoreToStg.Prep
  CallStack (from HasCallStack):
    panic, called at compiler/GHC/Utils/Error.hs:507:29 in ghc-9.10.0.20240313-inplace:GHC.Utils.Error


Please report this as a GHC bug:  https://www.haskell.org/ghc/reportabug

Note

error does NOT happen with -O0, or -O2, but DOES appear with -O1 (which is cabal's default?)