This issue was found in the wild by a friend after they mistakenly wrote Seq.cons Seq.empty x instead of Seq.cons x Seq.empty.
Given the file
(* mwe.ml *)
type 'a t = T of 'a
let to_seq (xt : 'a t) : 'a Seq.t =
let T x = xt in
Seq.cons Seq.empty x
ocamlc 5.1.1 encounters an ICE
$ ocamlc mwe.ml
Fatal error: exception Ctype.Escape(_)