This bug, exposed by Trac #12562 was very obscure, and has been
lurking for a long time.  What happened was that, in the
worker/wrapper split

  a tyvar binder for a worker function
  accidentally shadowed an in-scope term variable
  that was mentioned in the body of the function

It's jolly hard to provoke, so I have not even attempted to make
a test case.  There's a Note [Freshen WW arguments] to explain.

Interestingly, fixing the bug (which meant fresher type variables)
revealed a second lurking bug: I'd failed to apply the substitution to
the coercion in the second last case of mkWWArgs, which introduces a
Cast.