Poetry SolverProblemError, trying to understand the issue

[invokermain]

Today I saw someone's poetry project fail to resolve versions with the following setup:

Project requires python = "~3.8"
Dependency (from git) requires: python = "^3.8.6"

This leads to the following error:

SolverProblemError
  The current project's Python requirement (>=3.8,<3.9) is not compatible with some of the required packages Python requirement:
    - Dependency requires Python ^3.8.6, so it will not be satisfied for Python >=3.8,<3.8.6
  Because Project depends on Dependency (0.0.1 git rev master) which requires Python ^3.8.6, version solving failed.

Reading the syntax documentation these version requirements should be compatible as they both allow >=3.8.6,<3.9.0.

My guess is that the issue is caused because the error message treats Python like a package but obviously it is not a package?

Therefore poetry will check the compatibility against what Python version is current installed and not what is allowed, i.e. poetry cannot update Python to satisfy a new dependency. If this is the case then the error message is misleading as it treats python as any other Package?

Can someone weigh in on this.