Don't ignore dependencies for render phase update

packages/react-reconciler/src/ReactFiberHooks.js

@@ -428,6 +428,11 @@ export function renderWithHooks(
     do {
       didScheduleRenderPhaseUpdate = false;
       numberOfReRenders += 1;
+      if (__DEV__) {
+        // Even when hot reloading, allow dependencies to stabilize
+        // after first render to prevent infinite render phase updates.
+        ignorePreviousDependencies = false;
+      }
 
       // Start over from the beginning of the list
       nextCurrentHook = current !== null ? current.memoizedState : null;

packages/react-refresh/src/__tests__/ReactFresh-test.js

@@ -2350,6 +2350,49 @@ describe('ReactFresh', () => {
     }
   });
 
+  // This pattern is inspired by useSubscription and similar mechanisms.
+  it('does not get into infinite loops during render phase updates', () => {
+    if (__DEV__) {
+      render(() => {
+        function Hello() {
+          const source = React.useMemo(() => ({value: 10}), []);
+          const [state, setState] = React.useState({value: null});
+          if (state !== source) {
+            setState(source);
+          }
+          return <p style={{color: 'blue'}}>{state.value}</p>;
+        }
+        $RefreshReg$(Hello, 'Hello');
+        return Hello;
+      });
+
+      const el = container.firstChild;
+      expect(el.textContent).toBe('10');
+      expect(el.style.color).toBe('blue');
+
+      // Perform a hot update.
+      act(() => {
+        patch(() => {
+          function Hello() {
+            const source = React.useMemo(() => ({value: 20}), []);
+            const [state, setState] = React.useState({value: null});
+            if (state !== source) {
+              // This should perform a single render-phase update.
+              setState(source);
+            }
+            return <p style={{color: 'red'}}>{state.value}</p>;
+          }
+          $RefreshReg$(Hello, 'Hello');
+          return Hello;
+        });
+      });
+
+      expect(container.firstChild).toBe(el);
+      expect(el.textContent).toBe('20');
+      expect(el.style.color).toBe('red');
+    }
+  });
+
   it('can hot reload offscreen components', () => {
     if (__DEV__) {
       const AppV1 = prepare(() => {