I think "Foundation" axiom F forbids your recursive set, and there are models of both core set theory satisfying either F or ¬F, so F is independent of core set theory (core -> not including F or ¬F). F is normally assumed in set theory, but Aczel has worked with "ill" founded (¬F) set theory models. Just as with the axiom of choice. No religion wars, just people pushed to be explicit with assumptions.