Graph inference: wrong logic for picking best variable to solve

This program fails to compile:

import java.util.Map;

class TestData<X,Y> { }

interface Foo<X, Y extends Foo<X, Y>> { }

interface IntFoo extends Foo<Integer, IntFoo> { }

interface Function<X, Y> {
  Y apply(X x);
}


class Test {
        void test(TestData<Integer, IntFoo> data) {
           m(data, s->s);
        }

<E, E_OUT extends Foo<E, E_OUT>, W, W_IN extends Foo<W, W_IN>> void m(TestData<W, W_IN> data, Function<W_IN, E_OUT> m) { }
}

Note: if inference variable in the 'm' method are swapped, so that W, W_IN come first, the program compiles.