PR# 16741 expanded generic class works for variable type but not as return type

I would expect the code provided below to either work in both cases or not at all. It's kind of weird that it works only in one case.

expanded class
	FOO [ G ]
end

class
	APPLICATION

create
	make

feature {NONE} -- Initialization

	make
		local
			t: FOO [FOO [INTEGER]] -- works
		do
		end

	doesnt_work: FOO [FOO [INTEGER]] -- doesn't work: Cycle in expanded client relation

end

This is expected as the current compiler behaves like ETL3. The new standard is more flexible about that I believe, but our compiler does not handle this because we are trying to optimize expanded types and when used as an attribute it prevents that optimization.