FWIW, it is possible to trick the compiler by using a case statement and a non-obvious contradiction:
with t(n,s) as ( values (65,nya.remove_diacritics(chr(65)))
union all
select n+1, case when n < 1000 then
nya.remove_diacritics(chr(n+1))
else 'A' end
from t where n+1 < 70
)
select n,s from t
65 A
66 B
67 C
68 D
69 E