So once you've identified this, now you might consider the universe of possible solutions to the problem. One of those solutions might be removing existentials from your language; think about how Scala would work if implicits were removed (I haven't used Scala 3, maybe this happened?). Another solution might be to decouple the whole concept of "existential implementations of typed extension points" from libraries (or crates, or however you compile and distribute code), and require bringing instances into scope via imports or similar.
Two things are true for sure, though: libraries already depend on the current behavior, whether that makes sense or not; and forcing users to understand coherence (which instance is used by which code) is almost always a giant impediment to getting users to like your language. Hence, "orphan rules", and why everyone hates Scala 2 implicits.