As Rob indicated the dependency "loop" would not exist by default.  It
depends on how the designer implemented the MyClient service.  A Windows
Service should have a control handler thread that processes events from the
Service Control Manager and separate worker thread(s) that implement the
functionality of the service (such as calling CreateProcess to launch
another application).  The control thread must always run and process events
from the SCM.  If it becomes blocked the SCM will report an error against
the service for not responding.  If the SERVICE_CONTROL_STOP action cannot
be implemented immediately the service should respond by setting the
service's status to SERVICE_STOP_PENDING and incrementing the HintCounter to
avoid a SCM timeout.

Your theory would suggest that in addition to the worker thread calling
CreateProcess to spawn the bundle (and then the bundle calling CreateProcess
to spawn the package) the developer of the MyClient service implemented some
code to wait for the bundle exe to terminate before it "allowed" the control
handler thread to process an SCM event.  (Not generally advisable, but maybe
there is a good reason.)  So your theory requires that a designer implement
this behavior in the MyClient service.  Your theory also assumes that the
bundle exe has code to determine when the package has terminated, which I
believe is correct.  So that part of the loop is probably valid.  The
question however goes back to how the MyClient service is designed.





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