Incorrect Generic compatibility report #29062

interface HasHeight { 
  height: number
}

type Omit<P, K extends keyof P> = Pick<P, Exclude<keyof P, K>>

function makeHeightOptional<P extends HasHeight>(heightRequired: (p: P) => number) {
  return function heightOptional(params: Omit<P, 'height'> & { height?: number }) {
    const height = params.height || 10
    const newParams = { ...params, height }

    // Argument of type 'Pick<P, Exclude<keyof P, "height">> & { height: number; }' is not assignable to parameter of type 'P'.
    return heightRequired(newParams)
  }
}