When a lambda with explicit template parameters like []<int> also has
implicit template parameters from auto, and is used as a default
template argument, processing_template_parmlist remained set
from the outer template context. This caused
function_being_declared_is_template_p to incorrectly return false,
leading synthesize_implicit_template_parm to create a new template
scope instead of extending the existing one, resulting in a binding
level mismatch and an ICE in poplevel_class.

Fix by clearing processing_template_parmlist in
cp_parser_lambda_expression alongside the other parser state
save/restore operations.

        PR c++/117518

gcc/cp/ChangeLog:

        * parser.cc (cp_parser_lambda_expression): Clear
        processing_template_parmlist when parsing lambda body.

gcc/testsuite/ChangeLog:

        * g++.dg/cpp2a/lambda-targ19.C: New test.

Signed-off-by: Egas Ribeiro <[email protected]>
---
 gcc/cp/parser.cc                           | 2 ++
 gcc/testsuite/g++.dg/cpp2a/lambda-targ19.C | 4 ++++
 2 files changed, 6 insertions(+)
 create mode 100644 gcc/testsuite/g++.dg/cpp2a/lambda-targ19.C

diff --git a/gcc/cp/parser.cc b/gcc/cp/parser.cc
index 521c05549f1..213177a8c31 100644
--- a/gcc/cp/parser.cc
+++ b/gcc/cp/parser.cc
@@ -12042,6 +12042,8 @@ cp_parser_lambda_expression (cp_parser* parser,
     bool saved_omp_array_section_p = parser->omp_array_section_p;
     bool saved_in_targ = parser->in_template_argument_list_p;
     bool saved_in_declarator_p = parser->in_declarator_p;
+    auto parmlist_sentinel
+      = make_temp_override (processing_template_parmlist, 0);
 
     parser->num_template_parameter_lists = 0;
     parser->in_statement = 0;
diff --git a/gcc/testsuite/g++.dg/cpp2a/lambda-targ19.C 
b/gcc/testsuite/g++.dg/cpp2a/lambda-targ19.C
new file mode 100644
index 00000000000..d02f6d6a3a3
--- /dev/null
+++ b/gcc/testsuite/g++.dg/cpp2a/lambda-targ19.C
@@ -0,0 +1,4 @@
+// { dg-do compile { target c++20 } }
+// PR c++/117518
+template <auto = []<int> (auto) {}> int x;
+int y = x<>;
-- 
2.52.0

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