Contract-typed call in an ABI-hash assignment panics

Source

// SPDX-License-Identifier: UNLICENSED
pragma solidity ^0.8.35;

/* ===ARENA-MANIFEST===
{"deploy":{"contract":"C","args":[],"value":0},"entry":{"function":"run","args":[],"value":0},"lane":"S","feature":"contract-type-internal-call-abi-hash-assignment"}
===END-ARENA-MANIFEST=== */

contract C {
    function identity(C value) internal pure returns (C) {
        return value;
    }

    function run() external returns (bytes32) {
        C value = C(address(0));
        bytes32 observation;
        observation = keccak256(abi.encode(identity(value)));
        return observation;
    }
}