Is there any rule for how type inference is done
Yes, the entire 18th chapter of the Java Language Specification is dedicated to this topic :-)
and why it selects D?
I think the following rule is responsible for that:
If the bound set does not contain a bound of the form G<..., αi, ...> = capture(G<...>) for all i (1 ≤ i ≤ n), then a candidate instantiation Ti is defined for each αi:
If αi has one or more proper lower bounds, L1, ..., Lk, then Ti = lub(L1, ..., Lk) (§4.10.4).
Otherwise, if the bound set contains throws αi, and the proper upper bounds of αi are, at most, Exception, Throwable, and Object, then Ti = RuntimeException.
Otherwise, where αi has proper upper bounds U1, ..., Uk, Ti = glb(U1, ..., Uk) (§5.1.10).
The bounds α1 = T1, ..., αn = Tn are incorporated with the current bound set.
If the result does not contain the bound false, then the result becomes the new bound set, and resolution proceeds by selecting a new set of variables to instantiate (if necessary), as described above.
In plain english, when trying out possible values for a type parameter, the compiler first tries the lower bound, and uses that one if it fits.
In our case, the constraint set says that D extends T and D extends A
, so the lower bound for T
is D
, so D
is the first candidate substitution.
The compiler than verifies whether D
fits by assuming that T = D
, which simplifies that constraint set to D extends D and D extends A
, both of which are known to be true.
Therefore, the compiler uses D
.