diff --git a/clang/lib/Sema/SemaTemplateInstantiate.cpp b/clang/lib/Sema/SemaTemplateInstantiate.cpp
--- a/clang/lib/Sema/SemaTemplateInstantiate.cpp
+++ b/clang/lib/Sema/SemaTemplateInstantiate.cpp
@@ -1270,7 +1270,8 @@
     }
 
     void transformedLocalDecl(Decl *Old, ArrayRef<Decl *> NewDecls) {
-      if (Old->isParameterPack()) {
+      if (Old->isParameterPack() &&
+          (NewDecls.size() != 1 || !NewDecls.front()->isParameterPack())) {
         SemaRef.CurrentInstantiationScope->MakeInstantiatedLocalArgPack(Old);
         for (auto *New : NewDecls)
           SemaRef.CurrentInstantiationScope->InstantiatedLocalPackArg(
diff --git a/clang/lib/Sema/TreeTransform.h b/clang/lib/Sema/TreeTransform.h
--- a/clang/lib/Sema/TreeTransform.h
+++ b/clang/lib/Sema/TreeTransform.h
@@ -13340,14 +13340,14 @@
               OldVD->getInit()->getSourceRange(), Unexpanded, Expand,
               RetainExpansion, NumExpansions))
         return ExprError();
+      assert(!RetainExpansion && "Should not need to retain expansion after a "
+                                 "capture since it cannot be extended");
       if (Expand) {
         for (unsigned I = 0; I != *NumExpansions; ++I) {
           Sema::ArgumentPackSubstitutionIndexRAII SubstIndex(getSema(), I);
           SubstInitCapture(SourceLocation(), std::nullopt);
         }
-      }
-      if (!Expand || RetainExpansion) {
-        ForgetPartiallySubstitutedPackRAII Forget(getDerived());
+      } else {
         SubstInitCapture(ExpansionTL.getEllipsisLoc(), NumExpansions);
         Result.EllipsisLoc = ExpansionTL.getEllipsisLoc();
       }
diff --git a/clang/test/SemaCXX/lambda-pack-expansion.cpp b/clang/test/SemaCXX/lambda-pack-expansion.cpp
--- a/clang/test/SemaCXX/lambda-pack-expansion.cpp
+++ b/clang/test/SemaCXX/lambda-pack-expansion.cpp
@@ -21,3 +21,18 @@
   take_by_ref(x);
 }
 }
+
+namespace GH63677 {
+
+template<typename>
+void f() {
+    []<typename... Ts>() -> void {
+        [...us = Ts{}]{
+            (Ts(us), ...);
+        };
+    }.template operator()<int, int>();
+}
+
+template void f<int>();
+
+}