diff --git a/compiler/src/dotty/tools/dotc/core/TypeComparer.scala b/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
index 0109780c6bc6..20e092679237 100644
--- a/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
+++ b/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
@@ -2618,12 +2618,11 @@ class TypeComparer(@constructorOnly initctx: Context) extends ConstraintHandling
     case tp1: TypeVar if tp1.isInstantiated =>
       tp1.underlying & tp2
     case CapturingType(parent1, refs1) =>
-      if subCaptures(tp2.captureSet, refs1, frozen = true).isOK
+      val refs2 = tp2.captureSet
+      if subCaptures(refs2, refs1, frozen = true).isOK
         && tp1.isBoxedCapturing == tp2.isBoxedCapturing
-      then
-        parent1 & tp2
-      else
-        tp1.derivedCapturingType(parent1 & tp2, refs1)
+      then (parent1 & tp2).capturing(refs2)
+      else tp1.derivedCapturingType(parent1 & tp2, refs1)
     case tp1: AnnotatedType if !tp1.isRefining =>
       tp1.underlying & tp2
     case _ =>
diff --git a/compiler/src/dotty/tools/dotc/core/Types.scala b/compiler/src/dotty/tools/dotc/core/Types.scala
index 9e84ca547b47..79b89598abd2 100644
--- a/compiler/src/dotty/tools/dotc/core/Types.scala
+++ b/compiler/src/dotty/tools/dotc/core/Types.scala
@@ -1940,7 +1940,7 @@ object Types {
      *  the two capture sets are combined.
      */
     def capturing(cs: CaptureSet)(using Context): Type =
-      if cs.isConst && cs.subCaptures(captureSet, frozen = true).isOK then this
+      if cs.isAlwaysEmpty || cs.isConst && cs.subCaptures(captureSet, frozen = true).isOK then this
       else this match
         case CapturingType(parent, cs1) => parent.capturing(cs1 ++ cs)
         case _ => CapturingType(this, cs)
diff --git a/tests/neg-custom-args/captures/cc-glb.check b/tests/neg-custom-args/captures/cc-glb.check
new file mode 100644
index 000000000000..7e0d2ff85691
--- /dev/null
+++ b/tests/neg-custom-args/captures/cc-glb.check
@@ -0,0 +1,7 @@
+-- [E007] Type Mismatch Error: tests/neg-custom-args/captures/cc-glb.scala:7:19 ----------------------------------------
+7 |  val x2: Foo[T] = x1  // error
+  |                   ^^
+  |                   Found:    (x1 : (Foo[T]^) & (Foo[Any]^{io}))
+  |                   Required: Foo[T]
+  |
+  | longer explanation available when compiling with `-explain`
diff --git a/tests/neg-custom-args/captures/cc-glb.scala b/tests/neg-custom-args/captures/cc-glb.scala
new file mode 100644
index 000000000000..c22f1a36a300
--- /dev/null
+++ b/tests/neg-custom-args/captures/cc-glb.scala
@@ -0,0 +1,8 @@
+import language.experimental.captureChecking
+trait Cap
+trait Foo[+T]
+
+def magic[T](io: Cap^, x: Foo[T]^{io}): Foo[T]^{} =
+  val x1: Foo[T]^{cap} & Foo[Any]^{io} = x
+  val x2: Foo[T] = x1  // error
+  x2  // boom, an impure value becomes pure