Fix type resolution when a local name shadows a type name

Co-Authored-By: Adam Kostrzewski <akostrzewski@internships.antmicro.com>

Signed-off-by: Pawel Klopotek <pklopotek@internships.antmicro.com>

src/V3LinkDot.cpp

@@ -3572,9 +3572,13 @@ class LinkDotResolveVisitor final : public VNVisitor {
         while (lookp) {
             VSymEnt* const foundp = lookp->findIdFlat(name);
             if (foundp && !VN_IS(foundp->nodep(), MemberDType)) {
-                // A variable is not a type candidate (IEEE 1800-2023 6.18); skip it so an
-                // enclosing type is found, but keep it to preserve the "found: VAR" error.
-                if (!VN_IS(foundp->nodep(), Var)) return foundp;
+                // Non-type entries are not type candidates
+                // (IEEE 1800-2023 6.18); skip them so an enclosing
+                // type is found, but keep one to preserve the "found: ..." error.
+                if (VN_IS(foundp->nodep(), Typedef) || VN_IS(foundp->nodep(), ParamTypeDType)
+                    || VN_IS(foundp->nodep(), Class)) {
+                    return foundp;
+                }
                 if (!shadowEntp) shadowEntp = foundp;
             }
             lookp = lookp->fallbackp();

test_regress/t/t_function_shadow_class.v

@@ -0,0 +1,27 @@
+// DESCRIPTION: Verilator: Verilog Test module
+//
+// This file ONLY is placed under the Creative Commons Public Domain.
+// SPDX-FileCopyrightText: 2026 Antmicro
+// SPDX-License-Identifier: CC0-1.0
+
+module t;
+  class B;
+    function void B();
+    endfunction
+  endclass
+
+  class A;
+    B b = B::new();
+
+    function void B();
+      b.B();
+      $write("*-* All Finished *-*\n");
+      $finish;
+    endfunction
+  endclass
+
+  initial begin
+    static A a = A::new();
+    a.B();
+  end
+endmodule

test_regress/t/t_variable_shadow_type.py

@@ -0,0 +1,18 @@
+#!/usr/bin/env python3
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# This program is free software; you can redistribute it and/or modify it
+# under the terms of either the GNU Lesser General Public License Version 3
+# or the Perl Artistic License Version 2.0.
+# SPDX-FileCopyrightText: 2026 Wilson Snyder
+# SPDX-License-Identifier: LGPL-3.0-only OR Artistic-2.0
+
+import vltest_bootstrap
+
+test.scenarios('simulator')
+
+test.compile()
+
+test.execute()
+
+test.passes()

test_regress/t/t_variable_shadow_type.v

@@ -34,12 +34,16 @@ class parent;
   rand my_blk my_blk;
 endclass
 
+class Cls;
+endclass
+
 module t;
   my_t my_t;  // also legal at module scope
 
   initial begin
     static C c = new;
     static parent p = new;
+    static Cls Cls = new;
     c.my_t = 8'hAB;
     p.my_blk = new;
     p.my_blk.x = 5;