Hmm.. this looks like there are a lot of moving parts here.. Krastorio 2, SpaceExploration, BioIndustries, and Revese Factory each have a loong list of dependencies that are needed to make sure the right things are copied, modified, etc when they need to be. After loading up a minimal modlist with each of these mods, and their required dependencies, I looked into each of their optional dependencies, and yeah, there's pretty clear issue there.
The circular dependency just means that one mod lists another mod as required, which lists a third mod as required, which lists the first mod as required, and thus the game can't figure out which mod to load "first", since they all depend on another being loaded beforehand. This is exactly what's happening here, far as I can tell:
As you say, Reverse Factory has an optional dependency to Bio Industries; Bio Industries has an optional dependency to Krastorio2; Krastorio2 has an optional dependency to Space Exploration (main); Space Exploration (main) has a required dependency to Space Exploration (post-process); and Space Exploration (post-process) has an optional dependency to Reverse Factory.
In other words: RF > BI > K2 > SpaceEx > SpaceEx (post-process) > RF
As to what can be done to fix this... well, each of those mods thinks that another mod should load in first, to ensure that their own changes are performed afterwards. No way to tell which, if any of these dependencies are actually required. I remember an issue similar to this, that required SpaceEx (post-process) to list Reverse Factory as a dependency, but I completely don't remember what the specific issue was, or if it still applies.
On the other hand, what I could personally change, is removing Bio Industries as an optional dependency to Reverse Factory, which may fix your issue, but might also cause issues for other people, related to why I made the dependency in the first place. I can imagine that there were issue with Bio loading in after my mod, that prevented it from being recycled (that's the usual reason why this mod has ANY dependencies)
As for what Bio Industries could change; same thing, they could remove their optional dependency to Krastorio 2, but I have no idea why they need that dependency in the first place, or if they still need it now.
So yeah.. all that is to say; the issue cannot be easily resolved. I would say to look into the other Recycling Machines mod by DRY411S, which doesn't work quite as fluidly as mine (it's an assembling machine, so you have to pick each recipe, and manually change it to recycle something else), but might not cause this dependency loop. Otherwise, I suppose that, as you say, you'll have to forego using Reverse Factory, as the least disruptive change to your modlist.
