Some of the articles found during a brief websearch using ghc haskell "reduction stack" increase mention this option:
Use -freduction-depth=0 to disable this check
(any upper bound you could choose might fail unpredictably with
minor updates to GHC, so disabling the check is recommended if
you're sure that type checking should terminate)
On my system:
# ghci -freduction-depth=0 Foo.hs
GHCi, version 9.8.2: https://www.haskell.org/ghc/ :? for help
[1 of 1] Compiling Foo ( Foo.hs, interpreted )
…and still going. So what happens when you use -freduction-depth=0 ?