It is possible to apply a function to an infinite argument list: for example, (apply distinct? (repeat 1)) immediately returns false, after realizing just a few elements of the infinite sequence (repeat 1). However, (apply #'distinct? (repeat 1)) attempts to realize all of (repeat 1) into memory at once.
This happens because Var.applyTo delegates to AFn.applyToHelper to decide which arity of Var.invoke to dispatch to; but AFn doesn't expect infinite arglists (mostly those use RestFn). So it uses RT.seqToArray, which doesn't work well in this case.
Instead, Var.applyTo(args) can just dispatch to deref().applyTo(args), and let the function being stored figure out what to do with the arglist.
I've changed Var.applyTo to do this, and added a test (which fails before my patch is applied, and passes afterwards).