diff --git a/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/ConvertToNewScala3Syntax.scala b/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/ConvertToNewScala3Syntax.scala
index 25b7168828..03f2cdc479 100644
--- a/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/ConvertToNewScala3Syntax.scala
+++ b/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/ConvertToNewScala3Syntax.scala
@@ -70,7 +70,9 @@ private class ConvertToNewScala3Syntax(ftoks: FormatTokens)
         ft.meta.rightOwner match {
           case _: Importee.Wildcard if dialect.allowStarWildcardImport =>
             replaceTokenIdent("*", ft.right)
-          case _: Type.Placeholder if dialect.allowQuestionMarkPlaceholder =>
+          case t: Type.Placeholder
+              if dialect.allowQuestionMarkPlaceholder &&
+                t.parent.exists(_.is[Type]) =>
             replaceTokenIdent("?", ft.right)
           case _: Term.Repeated if dialect.allowPostfixStarVarargSplices =>
             removeToken // see above, under Colon
diff --git a/scalafmt-tests/src/test/resources/scala3/OptionalBraces.stat b/scalafmt-tests/src/test/resources/scala3/OptionalBraces.stat
index 06cb08377c..9258992b30 100644
--- a/scalafmt-tests/src/test/resources/scala3/OptionalBraces.stat
+++ b/scalafmt-tests/src/test/resources/scala3/OptionalBraces.stat
@@ -3554,3 +3554,13 @@ class Foo() {
       false
     }
 }
+<<< #3302
+rewrite.scala3.convertToNewSyntax = yes
+===
+type Inner[A] = A match
+  case Seq[x] => x
+  case _ => A
+>>>
+type Inner[A] = A match
+   case Seq[x] => x
+   case _      => A
diff --git a/scalafmt-tests/src/test/resources/scala3/OptionalBraces_fold.stat b/scalafmt-tests/src/test/resources/scala3/OptionalBraces_fold.stat
index b2896902d2..a05869d4b0 100644
--- a/scalafmt-tests/src/test/resources/scala3/OptionalBraces_fold.stat
+++ b/scalafmt-tests/src/test/resources/scala3/OptionalBraces_fold.stat
@@ -3380,3 +3380,13 @@ class Foo() {
       false
     }
 }
+<<< #3302
+rewrite.scala3.convertToNewSyntax = yes
+===
+type Inner[A] = A match
+  case Seq[x] => x
+  case _ => A
+>>>
+type Inner[A] = A match
+   case Seq[x] => x
+   case _      => A
diff --git a/scalafmt-tests/src/test/resources/scala3/OptionalBraces_keep.stat b/scalafmt-tests/src/test/resources/scala3/OptionalBraces_keep.stat
index b3719d3b77..6c086d0872 100644
--- a/scalafmt-tests/src/test/resources/scala3/OptionalBraces_keep.stat
+++ b/scalafmt-tests/src/test/resources/scala3/OptionalBraces_keep.stat
@@ -3536,3 +3536,13 @@ class Foo() {
       false
     }
 }
+<<< #3302
+rewrite.scala3.convertToNewSyntax = yes
+===
+type Inner[A] = A match
+  case Seq[x] => x
+  case _ => A
+>>>
+type Inner[A] = A match
+   case Seq[x] => x
+   case _      => A
diff --git a/scalafmt-tests/src/test/resources/scala3/OptionalBraces_unfold.stat b/scalafmt-tests/src/test/resources/scala3/OptionalBraces_unfold.stat
index a37706e25e..0a409b3949 100644
--- a/scalafmt-tests/src/test/resources/scala3/OptionalBraces_unfold.stat
+++ b/scalafmt-tests/src/test/resources/scala3/OptionalBraces_unfold.stat
@@ -3661,3 +3661,16 @@ class Foo() {
       false
     }
 }
+<<< #3302
+rewrite.scala3.convertToNewSyntax = yes
+===
+type Inner[A] = A match
+  case Seq[x] => x
+  case _ => A
+>>>
+type Inner[A] =
+  A match
+     case Seq[x] =>
+       x
+     case _ =>
+       A