Generally, the compiler error is correct: as Cls is an inner class, you can’t just create it without an instance of Inner class.
Of course, diagnostic message might be more informative (see the issue) Inner().Cls(null) might help, but here Inner is sealed, thus in some sense, it behaves like an abstract, i.e. it can’t be
instantiated itself.
I see several problems in your code that might be a compiler issue:
An object inside inner classes must be an error too (KT-16232)
inner sealed classes may be a subject to prohibit them (KT-16233)
By the way, the second example works only because it doesn’t contain inner classes (only nested ones, no inner modifier)