When the type itself isn't suspicious, I've found this is almost always due to a mismatched dependency between 2 packages in your repository. In this case "other/package" has a different version of the "zod" dependency, and some detail of the internals of the typing is causing things to explode.

(This has happened to me enough now that I wanted to highlight the version mismatch as opposed to the normal recursive type issues).

Aligning the package versions usually fixes the issue, either manually or by using a tool like ncu. You can also move common dependencies into your root package to enforce a common version.