Contravariance prevents proper type derivation in Scala 2.13.0

[swachter]

// if using Scala 2.13.0 then a compile error results in marked line below
// ("found Step[B with A]; required Step[A]")
// if using Dotty then it compiles fine
// after removing the contravariance from Step[E] it compiles also under Scala 2.13

// a Step requires some environment
type Step[-E]

// providing a 'p' allows to transform a step that requires an environment with P into a step that does no more require a P
def provide[E, P](p: P): Step[E with P] => Step[E] = ???

trait A
trait B

val step: Step[A with B] = ???

val b: B = ???

// the compile error occurs here
val s: Step[A] = provide(b)(step)

[SethTisue]

There is some additional context in https://contributors.scala-lang.org/t/better-type-inference-for-scala-send-us-your-problematic-cases/2410/97?u=sethtisue and the following messages. For example, @smarter identified scala/scala#6037 as potentially relevant.