diff --git a/compiler/src/dotty/tools/dotc/ast/Desugar.scala b/compiler/src/dotty/tools/dotc/ast/Desugar.scala
index 4c051163a58b..30dad2f44847 100644
--- a/compiler/src/dotty/tools/dotc/ast/Desugar.scala
+++ b/compiler/src/dotty/tools/dotc/ast/Desugar.scala
@@ -645,7 +645,7 @@ object desugar {
         .withPos(mdef.pos.startPos)
       val ValDef(selfName, selfTpt, _) = impl.self
       val selfMods = impl.self.mods
-      if (!selfTpt.isEmpty || selfName != nme.WILDCARD) ctx.error(ObjectMayNotHaveSelfType(mdef), impl.self.pos)
+      if (!selfTpt.isEmpty) ctx.error(ObjectMayNotHaveSelfType(mdef), impl.self.pos)
       val clsSelf = ValDef(selfName, SingletonTypeTree(Ident(moduleName)), impl.self.rhs)
         .withMods(selfMods)
         .withPos(impl.self.pos orElse impl.pos.startPos)
diff --git a/compiler/src/dotty/tools/dotc/core/Denotations.scala b/compiler/src/dotty/tools/dotc/core/Denotations.scala
index c82b1c1e85ca..da7bf9f380c4 100644
--- a/compiler/src/dotty/tools/dotc/core/Denotations.scala
+++ b/compiler/src/dotty/tools/dotc/core/Denotations.scala
@@ -332,14 +332,20 @@ object Denotations {
     }
 
     /** Handle merge conflict by throwing a `MergeError` exception */
-    private def mergeConflict(tp1: Type, tp2: Type)(implicit ctx: Context): Type = {
+    private def mergeConflict(tp1: Type, tp2: Type, that: Denotation)(implicit ctx: Context): Type = {
+      def showSymbol(sym: Symbol): String = if (sym.exists) sym.showLocated else "[unknown]"
       def showType(tp: Type) = tp match {
         case ClassInfo(_, cls, _, _, _) => cls.showLocated
         case bounds: TypeBounds => i"type bounds $bounds"
         case _ => tp.show
       }
-      if (true) throw new MergeError(s"cannot merge ${showType(tp1)} with ${showType(tp2)}", tp1, tp2)
-      else throw new Error(s"cannot merge ${showType(tp1)} with ${showType(tp2)}") // flip condition for debugging
+      val msg =
+        s"""cannot merge
+           |  ${showSymbol(this.symbol)} of type ${showType(tp1)}  and
+           |  ${showSymbol(that.symbol)} of type ${showType(tp2)}
+           """
+      if (true) throw new MergeError(msg, tp1, tp2)
+      else throw new Error(msg) // flip condition for debugging
     }
 
     /** Merge parameter names of lambda types. If names in corresponding positions match, keep them,
@@ -389,13 +395,13 @@ object Denotations {
             tp2 match {
               case tp2: TypeBounds => if (safeIntersection) tp1 safe_& tp2 else tp1 & tp2
               case tp2: ClassInfo if tp1 contains tp2 => tp2
-              case _ => mergeConflict(tp1, tp2)
+              case _ => mergeConflict(tp1, tp2, that)
             }
           case tp1: ClassInfo =>
             tp2 match {
               case tp2: ClassInfo if tp1.cls eq tp2.cls => tp1.derivedClassInfo(tp1.prefix & tp2.prefix)
               case tp2: TypeBounds if tp2 contains tp1 => tp1
-              case _ => mergeConflict(tp1, tp2)
+              case _ => mergeConflict(tp1, tp2, that)
             }
           case tp1: MethodOrPoly =>
             tp2 match {
@@ -420,9 +426,9 @@ object Denotations {
                   tp1.derivedLambdaType(
                     mergeParamNames(tp1, tp2), tp1.paramInfos,
                     infoMeet(tp1.resultType, tp2.resultType.subst(tp2, tp1)))
-                else mergeConflict(tp1, tp2)
+                else mergeConflict(tp1, tp2, that)
               case _ =>
-                mergeConflict(tp1, tp2)
+                mergeConflict(tp1, tp2, that)
             }
           case _ =>
             tp1 & tp2
@@ -523,7 +529,12 @@ object Denotations {
               try infoMeet(info1, info2)
               catch {
                 case ex: MergeError =>
-                  if (pre.widen.classSymbol.is(Scala2x) || ctx.scala2Mode)
+                  // TODO: this picks one type over the other whereas it might be better
+                  // to return a MultiDenotation instead. But doing so would affect lots of
+                  // things, starting with the return type of this method.
+                  if (preferSym(sym2, sym1)) info2
+                  else if (preferSym(sym1, sym2)) info1
+                  else if (pre.widen.classSymbol.is(Scala2x) || ctx.scala2Mode)
                     info1 // follow Scala2 linearization -
                   // compare with way merge is performed in SymDenotation#computeMembersNamed
                   else
@@ -560,13 +571,13 @@ object Denotations {
           tp2 match {
             case tp2: TypeBounds => tp1 | tp2
             case tp2: ClassInfo if tp1 contains tp2 => tp1
-            case _ => mergeConflict(tp1, tp2)
+            case _ => mergeConflict(tp1, tp2, that)
           }
         case tp1: ClassInfo =>
           tp2 match {
             case tp2: ClassInfo if tp1.cls eq tp2.cls => tp1.derivedClassInfo(tp1.prefix | tp2.prefix)
             case tp2: TypeBounds if tp2 contains tp1 => tp2
-            case _ => mergeConflict(tp1, tp2)
+            case _ => mergeConflict(tp1, tp2, that)
           }
         case tp1: MethodOrPoly =>
           tp2 match {
@@ -577,7 +588,7 @@ object Denotations {
                 mergeParamNames(tp1, tp2), tp1.paramInfos,
                 tp1.resultType | tp2.resultType.subst(tp2, tp1))
             case _ =>
-              mergeConflict(tp1, tp2)
+              mergeConflict(tp1, tp2, that)
           }
         case _ =>
           tp1 | tp2
diff --git a/compiler/src/dotty/tools/dotc/core/NameKinds.scala b/compiler/src/dotty/tools/dotc/core/NameKinds.scala
index 24cbb051b082..bf758ac77300 100644
--- a/compiler/src/dotty/tools/dotc/core/NameKinds.scala
+++ b/compiler/src/dotty/tools/dotc/core/NameKinds.scala
@@ -63,7 +63,7 @@ object NameKinds {
     def infoString: String
   }
 
-  object SimpleNameKind extends NameKind(UTF8) {
+  object SimpleNameKind extends NameKind(UTF8) { self =>
     type ThisInfo = Info
     val info = new Info
     def mkString(underlying: TermName, info: ThisInfo) = unsupported("mkString")
diff --git a/compiler/src/dotty/tools/dotc/typer/Namer.scala b/compiler/src/dotty/tools/dotc/typer/Namer.scala
index c7217ef7cd3f..69836719c7d3 100644
--- a/compiler/src/dotty/tools/dotc/typer/Namer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Namer.scala
@@ -954,7 +954,13 @@ class Namer { typer: Typer =>
 
       val selfInfo =
         if (self.isEmpty) NoType
-        else if (cls.is(Module)) cls.owner.thisType.select(sourceModule)
+        else if (cls.is(Module)) {
+          val moduleType = cls.owner.thisType select sourceModule
+          if (self.name == nme.WILDCARD) moduleType
+          else recordSym(
+            ctx.newSymbol(cls, self.name, self.mods.flags, moduleType, coord = self.pos),
+            self)
+        }
         else createSymbol(self)
 
       // pre-set info, so that parent types can refer to type params
diff --git a/compiler/test/dotty/tools/dotc/FromTastyTests.scala b/compiler/test/dotty/tools/dotc/FromTastyTests.scala
index 2dee6f9e7040..75f2ed603242 100644
--- a/compiler/test/dotty/tools/dotc/FromTastyTests.scala
+++ b/compiler/test/dotty/tools/dotc/FromTastyTests.scala
@@ -59,6 +59,9 @@ class FromTastyTests extends ParallelTesting {
         "spec-super.scala",
         "spec-sparsearray-old.scala",
         "collections_1.scala",
+
+        // Infinite compilation
+        "t3612.scala",
       )
     )
     step1.checkCompile() // Compile all files to generate the class files with tasty
diff --git a/scala2-library b/scala2-library
index 723f22266db0..e588767817e4 160000
--- a/scala2-library
+++ b/scala2-library
@@ -1 +1 @@
-Subproject commit 723f22266db0a72e3ac19358586e3426757ac201
+Subproject commit e588767817e4985852f6547fc7cf211a8a7df3fa
diff --git a/tests/neg/i831.scala b/tests/neg/i831.scala
deleted file mode 100644
index 53e4185ed9a8..000000000000
--- a/tests/neg/i831.scala
+++ /dev/null
@@ -1,4 +0,0 @@
-object Test { self => // error: objects must not have a self type
-  def a = 5
-  self.a // error: not found: self
-}
diff --git a/tests/pickling/desugar.scala b/tests/pickling/desugar.scala
index 720f46d9c3e7..0d3b6d8ca624 100644
--- a/tests/pickling/desugar.scala
+++ b/tests/pickling/desugar.scala
@@ -11,7 +11,7 @@ object desugar {
   def foo1(first: Int, second: Int = 2)(third: Int = 3) = first + second
   def foo2(first: Int)(second: Int = 2)(third: Int = 3) = first + second
 
-  object caseClasses {
+  object caseClasses { self =>
     trait List[+T] {
       def head: T
       def tail: List[T]
diff --git a/tests/pos/desugar.scala b/tests/pos/desugar.scala
index d5e13fb1d8c8..cc679498578f 100644
--- a/tests/pos/desugar.scala
+++ b/tests/pos/desugar.scala
@@ -11,7 +11,7 @@ object desugar {
   def foo1(first: Int, second: Int = 2)(third: Int = 3) = first + second
   def foo2(first: Int)(second: Int = 2)(third: Int = 3) = first + second
 
-  object caseClasses {
+  object caseClasses { self =>
     trait List[+T] {
       def head: T
       def tail: List[T]
diff --git a/tests/pos/i831.scala b/tests/pos/i831.scala
new file mode 100644
index 000000000000..629853b9ca6b
--- /dev/null
+++ b/tests/pos/i831.scala
@@ -0,0 +1,4 @@
+object Test { self =>
+  def a = 5
+  self.a
+}
diff --git a/tests/pos/t3612.scala b/tests/pos/t3612.scala
new file mode 100644
index 000000000000..a9d063998ca1
--- /dev/null
+++ b/tests/pos/t3612.scala
@@ -0,0 +1,6 @@
+trait C
+
+class Outer {
+  object O0 extends C {}
+  object O extends C { self => }
+}