A DESCRIPTION OF THE PROBLEM :
Errors are displayed when compiling a valid code:

java: incompatible types: cannot infer type-variable(s) 

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Use the attached class source

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Code compiles without any problems
ACTUAL -
Compiliation error is displayed:

InvalidGeneric.java:6:66
java: incompatible types: cannot infer type-variable(s) InputType,OutputType
    (argument mismatch; BaseInput<capture#1 of ?,capture#2 of ?> cannot be converted to Input<InputType,OutputType>)
InvalidGeneric.java:7:185
java: incompatible types: cannot infer type-variable(s) InputType,OutputType
    (argument mismatch; BaseInput<capture#3 of ?,capture#4 of ?> cannot be converted to Input<InputType,OutputType>)

---------- BEGIN SOURCE ----------
public class InvalidGeneric {

    public static void main(String[] args) {
        final BaseInput<?, ?> input = null;
        final Service service = new Service() {};
        final BaseInput.BaseOutput<?, ?> output = service.service(input);
        final BaseInput.BaseOutput<? extends BaseInput<?, ? extends BaseInput.BaseOutput<?, ?>>, ? extends BaseInput.BaseOutput<? extends BaseInput<?, ?>, ?>> output2 = service.service(input);
    }
}

interface Service {
    default <InputType extends Input<InputType, OutputType>, OutputType extends Input.Output<InputType, OutputType>> OutputType service(Input<InputType, OutputType> operation) {
        return null;
    }
}

interface Input<InputType extends Input<InputType, OutputType>, OutputType extends Input.Output<InputType, OutputType>> {
    abstract class Output<OutputType extends Input<OutputType, InputType>, InputType extends Output<OutputType, InputType>> {
    }
}

class BaseInput<BaseInputType extends BaseInput<BaseInputType, BaseOutputType>, BaseOutputType extends BaseInput.BaseOutput<BaseInputType, BaseOutputType>>
        implements Input<BaseInputType, BaseOutputType> {
    static class BaseOutput<BaseInputType extends BaseInput<BaseInputType, BaseOutputType>, BaseOutputType extends BaseOutput<BaseInputType, BaseOutputType>> extends Output<BaseInputType, BaseOutputType> {
    }
}

---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
Declare variable as var or compile using eclipse compiler

FREQUENCY : always