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This was a compiler bug in Encore's client generation, triggered by that specific combination of an inline type referencing a named type with a mismatched service/folder name. Its fixed in encore v1.53.7, so run encore version update and regenerate. The workaround if youre stuck on an older version is to not use the inline type: define the full request type as a named type before the api definition, which one reporter confirmed avoids the panic. Source: https://github.com/encoredev/encore/issues/1711
Source: https://github.com/encoredev/encore/issues/1711