And if we call that machine H* to make it clearer in symbology.
H* (M) being a machine that duplicates its input and then uses its copy
of H.
We KNOW that H (M) (M) Must halt if H is truely a Halt Decider, since
all Halt Deciders must Halt, thus
H* (H*) which will just use H (H*) (H*) must halt, thus the correct
answer to H (H*) (H*) must be that it will halt.
So H* (H*) must end up in Qy, if H is a correct Halt Decider.
There is nothing problimatic about that.
It is only when you apply the second operation, to make the H^ that Linz
ended with that adds the infinite loop to Qy, that we run into the problem.
H^ no longer has the meaning of being a "Decider", since we KNOW that
for some inputs H^ will not halt, it is only a machine to test our H or
H* deciders on. (and as not being a decider, it can't be
"self-contradictory, as it doesn't assert anything itself).
What we can show now, is that NO H, or H* can give the right answer when
asked about H^ (H^).
This doesn't mean there isn't an answer, as for every existing claimant
to being a Halt Decider that actually exists, H^ (H^) will have a
definite behavior and thus the is a correct answer, just not the one
that the particular claimant returned, thus the claimant is wrong.
The "Liar's Paradox" only come about when you presume (incorrectly) that
a H that always gives the right answer exists, and it is that INCORRECT
presumption that is proved to be wrong by the paradox.
You don't seem to understand that part of logic. You can't just assume
that something exists, and if that assumption leads to a paradox, you
have just proven yourself wrong.