Yes, in my understanding it is circular.
But first let us clarify our definitions.
Translating vijnana as consciousness is misleading. Vijnana is differentiated subjective experience. In other words, it's a "parsed" experience of a situation: "This is my bedroom at night, I can see my bed, the clock, and the humidifier".
Furthermore, in context of DO namarupa does not refer to the mind-and-body. It literally means name-forms or simply "notions" - our ideas of objects like bedroom, night, bed, clock, humidifier.
Now you can understand the meaning. A newborn baby does not yet have an experience of the bedroom. Everything is mixed up, there's no separation. The baby does not understand anything, does not know where it is and what's around.
Then, gradually, over a long time, it accumulates thousands or millions of observations, until it starts forming very vague ideas about its world: this is the mother, this is where she comes through (there's no notion of the door yet), eating feels good, and so on.
At first the baby's namarupas are very primitive, very vague - and so is the baby's vijnana. As more and more namarupas are established, identified, and acquired from repeated interactions with the environment - the vijnana gets more and more detailed, nuanced, and robust. As vijnana gets more detailed, the baby's interactions with the environment get more interesting and its desires get more complex. This, in turn, leads to more namarupas getting established.
It goes like this, cyclically, iteratively, with samskaras (behavioral tendencies), vijnana (differentiated experience), and namarupas (notions of forms) supporting and feeding each other as they grow and mature.
The rest of the DO sequence is a further development of the same material. We are talking about samjna, vedana, tanha, upadana, and so on — but all of them are "made from" samskaras, namarupas, and vijnana — just more specialized. Our mental world gets more and more detailed until we are trapped in it.
Are you suggesting 'form' cannot exist without being somehow percieved?
– Robbie Goodwin Nov 28 '23 at 21:51