diff --git a/src/mir/builder/control_flow/joinir/merge/exit_phi_builder.rs b/src/mir/builder/control_flow/joinir/merge/exit_phi_builder.rs
index 608344e5..45f9a2d2 100644
--- a/src/mir/builder/control_flow/joinir/merge/exit_phi_builder.rs
+++ b/src/mir/builder/control_flow/joinir/merge/exit_phi_builder.rs
@@ -32,8 +32,10 @@ pub(super) fn build_exit_phi(
         // Phase 189-Fix: If we collected return values, create a PHI in exit block
         // This merges all return values from JoinIR functions into a single value
         let phi_result = if !exit_phi_inputs.is_empty() {
-            // Allocate a new ValueId for the PHI result
-            let phi_dst = builder.value_gen.next();
+            // Phase 132-P2: Use function-level next_value_id() to allocate
+            // Previously used builder.value_gen.next() which is module-level, causing ValueId collisions
+            // Note: We use func.next_value_id() directly since builder.current_function is already borrowed
+            let phi_dst = func.next_value_id();
             exit_block.instructions.push(MirInstruction::Phi {
                 dst: phi_dst,
                 inputs: exit_phi_inputs.to_vec(),
@@ -61,8 +63,10 @@ pub(super) fn build_exit_phi(
                 continue;
             }
 
-            // Allocate a new ValueId for this carrier's PHI
-            let phi_dst = builder.value_gen.next();
+            // Phase 132-P2: Use function-level next_value_id() to allocate
+            // Previously used builder.value_gen.next() which is module-level, causing ValueId collisions
+            // Note: We use func.next_value_id() directly since builder.current_function is already borrowed
+            let phi_dst = func.next_value_id();
             exit_block.instructions.push(MirInstruction::Phi {
                 dst: phi_dst,
                 inputs: inputs.clone(),