Circular dependency detected

This is an issue with Symfony Dependency Injection component on version 5.3.7.

Just add this to your composer.json:

"conflict": {
    "symfony/dependency-injection": "5.3.7"
},

This way you can keep the rest of the dependencies updated, and it will just exclude DI 5.3.7 in favour of 5.3.6.

Yeah, but it's still happening in DI v6.2.7

It seems this has to do with Tracer module (a dependency of Webprofiler) which I had just enabled before seeing the error in this issue. I managed to uninstall both Webprofiler and Tracer and the issue disappeared.