Weird min-width: max-content behavior (jsfiddle)

Can someone explain to me what's happening in this fiddle? https://jsfiddle.net/th147dmf/53/

This is a simplified version of something that is happening in my actual app.

If you comment out the width: 1px the overflow behavior is ruined, even though the 1px width doesn't seem to be used.
The max-width: 100% doesn't change the behavior either way. even though it seems like it should.

Can someone help me understand whats going on here?
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