Normalize generic_ty before checking if bound is met

compiler/rustc_infer/src/infer/lexical_region_resolve/mod.rs

@@ -638,6 +638,7 @@ impl<'cx, 'tcx> LexicalResolver<'cx, 'tcx> {
             let sub = var_data.normalize(self.tcx(), verify.region);
 
             let verify_kind_ty = verify.kind.to_ty(self.tcx());
+            let verify_kind_ty = var_data.normalize(self.tcx(), verify_kind_ty);
             if self.bound_is_met(&verify.bound, var_data, verify_kind_ty, sub) {
                 continue;
             }

src/test/ui/generic-associated-types/issue-81487.rs

@@ -0,0 +1,19 @@
+// build-pass
+
+#![feature(generic_associated_types)]
+
+trait Trait {
+    type Ref<'a>;
+}
+
+impl Trait for () {
+    type Ref<'a> = &'a i8;
+}
+
+struct RefRef<'a, T: Trait>(&'a <T as Trait>::Ref<'a>);
+
+fn wrap<'a, T: Trait>(reff: &'a <T as Trait>::Ref<'a>) -> RefRef<'a, T> {
+    RefRef(reff)
+}
+
+fn main() {}