diff --git a/python-multiplatform-ksp/src/main/python/typedpython/verify.py b/python-multiplatform-ksp/src/main/python/typedpython/verify.py
index 350314f9..4905ee17 100644
--- a/python-multiplatform-ksp/src/main/python/typedpython/verify.py
+++ b/python-multiplatform-ksp/src/main/python/typedpython/verify.py
@@ -1009,9 +1009,13 @@ def e_Call(self, e: Call, state: _State) -> ir.Expr:
             else:
                 redo = True
         if not redo:
-            for k, (a, p) in enumerate(zip(args, callee.params)):
-                if type(p) is Param and p.cls is not None and self.exact_of(a) != p.cls:
-                    self.can_deopt = True       # the callee's entry guard `type(x) is C` may fail
+            for p in callee.params:
+                # The callee's entry guard `type(x) is C` may fail, even for an argument that is a
+                # just-allocated `New(C)` local: on free-threaded CPython another thread can find
+                # the object through gc.get_objects() and assign `__class__` (SPEC N-12). So
+                # exact_of must not exempt the guard; cgen's `_can_deopt` is equally conservative.
+                if type(p) is Param and p.cls is not None:
+                    self.can_deopt = True
         if callee.may_deopt is True and not redo:
             self.can_deopt = True
         if not redo and not self.covers(callee):
diff --git a/python-multiplatform-ksp/src/test/python/test_pipeline.py b/python-multiplatform-ksp/src/test/python/test_pipeline.py
index 2e43816e..6efbeb14 100644
--- a/python-multiplatform-ksp/src/test/python/test_pipeline.py
+++ b/python-multiplatform-ksp/src/test/python/test_pipeline.py
@@ -135,3 +135,47 @@ def cb2():
             ys[1] = 9.0
         mod.fill_then(ys, cb2)
         assert ys == [1.0, 9.0, 3.0]
+
+
+GC_REACHABLE = """\
+# typedpython: compiled
+
+
+class Cell:
+    a: object
+    b: object
+    __slots__ = ("a", "b")
+
+    def __init__(self, a: object, b: object) -> None:
+        self.a = a
+        self.b = b
+
+
+def seta(c: Cell, v: object) -> None:
+    c.a = v
+
+
+def fresh(a: object, n: int) -> object:
+    c = Cell(None, None)
+    seta(c, a)
+    s: object = None
+    for i in range(n):
+        s = c.a
+    return s
+"""
+
+
+def test_a_fresh_local_does_not_exempt_the_callee_class_guard(tmp_path):
+    # N-12: on free-threaded CPython another thread can reach even a just-allocated object
+    # through gc.get_objects() and assign __class__, so the callee's `type(x) is C` entry guard
+    # can fail. The impure caller must be skipped (verify/deopt-impure), never a CGenError.
+    path = tmp_path / "gcreach.py"
+    path.write_text(GC_REACHABLE)
+    result = pipeline.compile_module(path, tmp_path / "out", cost_rule=False)
+    assert "fresh" in result.skipped, result.skipped
+    assert "deopt" in result.skipped["fresh"], result.skipped["fresh"]
+    assert "seta" in [f.name for f in result.module.functions]
+    mod = pipeline.load(result)
+    c = mod.Cell(None, None)
+    mod.seta(c, 7)
+    assert c.a == 7