Implicit value can no longer be accessed via implicit conversion

Community build regression for https://github.com/giiita/refuel (maintainer @giiita) Based on Open Community Build #1884 Part of https://github.com/lampepfl/dotty/issues/15647 regressions tracker

Compiler version

Works in 3.1.1 Fails in 3.1.2 and 3.1.3 Fails in 3.2.0-RC* and 3.2.1-RC1-bin-20220711-6efd92d-NIGHTLY

Minimized code

trait JsonRowEntry {
  def readAs[E](implicit c: Read[E]): Option[E] = ???
}
trait Read[T]
trait Codec[T] extends Read[T]
trait CodecTypeProjection[C[_]]
object JsonTransform  {
  given SetCodec[T, C[_]: CodecTypeProjection]: scala.Conversion[C[T], C[Set[T]]] = ???
  given SetCodecExp[T, C[_]: CodecTypeProjection](using codec: C[T]): C[Set[T]] = codec
  given Codec[String] = ???
  given CodecTypeProjection[Read] = ???
}

@main def Test() = {
  import JsonTransform.given
  val tree = new JsonRowEntry {}
  tree.readAs[Set[String]]
}

Output

rror] ./test.scala:17:27: No given instance of type Read[Set[String]] was found for parameter c of method readAs in trait JsonRowEntry.
[error] I found:
[error] 
[error]     JsonTransform.SetCodecExp[String, C](
[error]       JsonTransform.given_CodecTypeProjection_Read
[error]     , /* missing */summon[C[String]])
[error] 
[error] But no implicit values were found that match type C[String].
[error]   tree.readAs[Set[String]]
[error]              

Expectation

Should be able to find correct implicit value by usage of implicit conversion

[griggt]

First bad commit is db5956b36a7e62b77f4b3a9335ab1587e0e47e2c from #13886

[odersky]

Is this behavior also expected? @odersky

Probably. It looks similar. We know for sure if it is the same commit that broke it.