diff --git a/compiler/src/dotty/tools/dotc/core/TypeComparer.scala b/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
index 0a76ff9f240b..2f3ee867af4b 100644
--- a/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
+++ b/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
@@ -1181,7 +1181,7 @@ class TypeComparer(initctx: Context) extends ConstraintHandling[AbsentContext] w
          *  If the original left-hand type `leftRoot` is a path `p.type`,
          *  and the current widened left type is an application with wildcard arguments
          *  such as `C[_]`, where `X` is `C`'s type parameter corresponding to the `_` argument,
-         *  compare with `C[p.X]` instead. Otherwise return `false`.
+         *  compare with `C[p.X]` instead. Otherwise approximate based on variance.
          *  Also do a capture conversion in either of the following cases:
          *
          *   - If we are after typer. We generally relax soundness requirements then.
@@ -1203,10 +1203,18 @@ class TypeComparer(initctx: Context) extends ConstraintHandling[AbsentContext] w
          *  paths is less intrusive than skolemization.
          */
         def compareCaptured(arg1: TypeBounds, arg2: Type) = tparam match {
-          case tparam: Symbol
-          if leftRoot.isStable || (ctx.isAfterTyper || ctx.mode.is(Mode.TypevarsMissContext)) && leftRoot.member(tparam.name).exists =>
-            val captured = TypeRef(leftRoot, tparam)
-            isSubArg(captured, arg2)
+          case tparam: Symbol =>
+            if (leftRoot.isStable || (ctx.isAfterTyper || ctx.mode.is(Mode.TypevarsMissContext))
+                && leftRoot.member(tparam.name).exists) {
+              val captured = TypeRef(leftRoot, tparam)
+              isSubArg(captured, arg2)
+            }
+            else if (v > 0)
+              isSubType(paramBounds(tparam).hi, arg2)
+            else if (v < 0)
+              isSubType(arg2, paramBounds(tparam).lo)
+            else
+              false
           case _ =>
             false
         }
diff --git a/compiler/src/dotty/tools/dotc/transform/ExpandSAMs.scala b/compiler/src/dotty/tools/dotc/transform/ExpandSAMs.scala
index 995c78c95cca..a9b2df9a75b9 100644
--- a/compiler/src/dotty/tools/dotc/transform/ExpandSAMs.scala
+++ b/compiler/src/dotty/tools/dotc/transform/ExpandSAMs.scala
@@ -107,8 +107,8 @@ class ExpandSAMs extends MiniPhase {
     anon.rhs match {
       case PartialFunctionRHS(pf) =>
         val anonSym = anon.symbol
-
-        val parents = List(defn.AbstractPartialFunctionType.appliedTo(tpe.argInfos), defn.SerializableType)
+        val anonTpe = anon.tpe.widen
+        val parents = List(defn.AbstractPartialFunctionType.appliedTo(anonTpe.firstParamTypes.head, anonTpe.resultType), defn.SerializableType)
         val pfSym = ctx.newNormalizedClassSymbol(anonSym.owner, tpnme.ANON_CLASS, Synthetic | Final, parents, coord = tree.span)
 
         def overrideSym(sym: Symbol) = sym.copy(
diff --git a/tests/neg/t5729.scala b/tests/neg/t5729.scala
new file mode 100644
index 000000000000..cdee8477f7c6
--- /dev/null
+++ b/tests/neg/t5729.scala
@@ -0,0 +1,7 @@
+object C {
+  def join(in: Seq[List[_]]): Int = 1
+  def join[S](in: Seq[List[S]]): String = "x"
+
+  val x= join(Seq[List[Int]]()) // error: ambiguous overload
+  assert(x == "x")
+}
diff --git a/tests/fuzzy/AE-9a131723f09b9f77c99c52b709965e580a61706e.scala b/tests/pos/AE-9a131723f09b9f77c99c52b709965e580a61706e.scala
similarity index 100%
rename from tests/fuzzy/AE-9a131723f09b9f77c99c52b709965e580a61706e.scala
rename to tests/pos/AE-9a131723f09b9f77c99c52b709965e580a61706e.scala
diff --git a/tests/pos/capture-variance.scala b/tests/pos/capture-variance.scala
new file mode 100644
index 000000000000..9f856e31438e
--- /dev/null
+++ b/tests/pos/capture-variance.scala
@@ -0,0 +1,13 @@
+class Hi
+class Lo extends Hi
+class Cov1[+T]
+class Cov2[+T >: Lo <: Hi]
+class Contra1[-T]
+class Contra2[-T >: Lo <: Hi]
+
+object Test {
+  val a: List[Cov1[Any]] = ??? : List[Cov1[_]]
+  val b: List[Cov2[Hi]] = ??? : List[Cov2[_]]
+  val c: List[Contra1[Nothing]] = ??? : List[Contra1[_]]
+  val d: List[Contra2[Lo]] = ??? : List[Contra2[_]]
+}
diff --git a/tests/run/t5729.scala b/tests/run/t5729.scala
index 3fe3a1dc7f8b..e643ed73ed67 100644
--- a/tests/run/t5729.scala
+++ b/tests/run/t5729.scala
@@ -4,13 +4,4 @@ object Test extends App {
   def join[S](in: Seq[T[S]]): String = "x"
   val x = join(null: Seq[T[_]])
   assert(x == 1)  // first alt chosen, since second requires a capture conversion in adapt
-  C
-}
-
-object C {
-  def join(in: Seq[List[_]]): Int = 1
-  def join[S](in: Seq[List[S]]): String = "x"
-
-  val x= join(Seq[List[Int]]()) // second alt chosen, since it is more specific
-  assert(x == "x")
 }