diff --git a/compiler/src/dotty/tools/dotc/core/TypeOps.scala b/compiler/src/dotty/tools/dotc/core/TypeOps.scala
index 587c52688456..1bec455c5495 100644
--- a/compiler/src/dotty/tools/dotc/core/TypeOps.scala
+++ b/compiler/src/dotty/tools/dotc/core/TypeOps.scala
@@ -157,15 +157,8 @@ object TypeOps:
         tp.derivedAlias(simplify(tp.alias, theMap))
       case AndType(l, r) if !ctx.mode.is(Mode.Type) =>
         simplify(l, theMap) & simplify(r, theMap)
-      case tp @ OrType(l, r)
-      if !ctx.mode.is(Mode.Type)
-         && (tp.isSoft || l.isBottomType || r.isBottomType) =>
-        // Normalize A | Null and Null | A to A even if the union is hard (i.e.
-        // explicitly declared), but not if -Yexplicit-nulls is set. The reason is
-        // that in this case the normal asSeenFrom machinery is not prepared to deal
-        // with Nulls (which have no base classes). Under -Yexplicit-nulls, we take
-        // corrective steps, so no widening is wanted.
-        simplify(l, theMap) | simplify(r, theMap)
+      case tp @ OrType(l, r) if !ctx.mode.is(Mode.Type) =>
+        TypeComparer.lub(simplify(l, theMap), simplify(r, theMap), isSoft = tp.isSoft)
       case tp @ CapturingType(parent, refs) =>
         if !ctx.mode.is(Mode.Type)
             && refs.subCaptures(parent.captureSet, frozen = true).isOK
diff --git a/compiler/src/dotty/tools/dotc/typer/Namer.scala b/compiler/src/dotty/tools/dotc/typer/Namer.scala
index 24721f1cd758..c1bde8d4fd3c 100644
--- a/compiler/src/dotty/tools/dotc/typer/Namer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Namer.scala
@@ -1961,7 +1961,8 @@ class Namer { typer: Typer =>
       else
         // don't strip @uncheckedVariance annot for default getters
         TypeOps.simplify(tp.widenTermRefExpr,
-            if defaultTp.exists then TypeOps.SimplifyKeepUnchecked() else null) match
+            if defaultTp.exists then TypeOps.SimplifyKeepUnchecked() else null)
+        match
           case ctp: ConstantType if sym.isInlineVal => ctp
           case tp => TypeComparer.widenInferred(tp, pt, widenUnions = true)
 
diff --git a/tests/pos/i10693.scala b/tests/pos/i10693.scala
new file mode 100644
index 000000000000..122984484658
--- /dev/null
+++ b/tests/pos/i10693.scala
@@ -0,0 +1,8 @@
+def test[A, B](a: A, b: B): A | B = a
+val v0 = test("string", 1)
+val v1 = test(1, "string")
+val v2 = test(v0, v1)
+val v3 = test(v1, v0)
+val v4 = test(v2, v3)
+val v5 = test(v3, v2)
+val v6 = test(v4, v5)