diff --git a/compiler/src/dotty/tools/dotc/typer/Applications.scala b/compiler/src/dotty/tools/dotc/typer/Applications.scala
index d1dffdbc9f9c..5acb067939cc 100644
--- a/compiler/src/dotty/tools/dotc/typer/Applications.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Applications.scala
@@ -333,7 +333,7 @@ object Applications {
       // it's crucial that the type tree is not copied directly as argument to
       // `cpy$default$1`. If it was, the variable `X'` would already be interpolated
       // when typing the default argument, which is too early.
-      spliceMeth(meth, fn).appliedToTypes(targs.tpes)
+      spliceMeth(meth, fn).appliedToTypeTrees(targs.map(targ => TypeTree(targ.tpe).withSpan(targ.span)))
     case _ => meth
   }
 
diff --git a/tests/pos/i18253.orig.scala b/tests/pos/i18253.orig.scala
new file mode 100644
index 000000000000..9efe1224ebfd
--- /dev/null
+++ b/tests/pos/i18253.orig.scala
@@ -0,0 +1,15 @@
+import compiletime.ops.int.Max
+
+trait DFSInt[W <: Int]
+trait Candidate[R]:
+  type OutW <: Int
+object Candidate:
+  given [W <: Int, R <: DFSInt[W]]: Candidate[R] with
+    type OutW = W
+
+def foo[R](rhs: R)(using icR: Candidate[R]): DFSInt[Max[8, icR.OutW]] = ???
+
+object Test:
+  def check[A](a: A, clue: Int = 1): Unit = ???
+  val x: DFSInt[8] = ???
+  check(foo(x))
diff --git a/tests/pos/i18253.scala b/tests/pos/i18253.scala
new file mode 100644
index 000000000000..8f395ee8e943
--- /dev/null
+++ b/tests/pos/i18253.scala
@@ -0,0 +1,14 @@
+import scala.compiletime.ops.int.Max
+
+trait Foo[A]
+trait Bar[B]:
+  type Out <: Int
+object Bar:
+  given inst[C <: Int]: Bar[C] with
+    type Out = C
+
+class Test:
+  def mkFoo(using bx: Bar[2]): Foo[Max[1, bx.Out]] = ???
+  def check[Y](yy: Y, clue: Int = 1): Unit = ()
+
+  def test: Unit = check(mkFoo)