Broken inference between index typed object and Record

TypeScript Version: 2.2.2

Code

interface Errors {
  [field: string]: {
    key: string
    message: string
  }
}

const errors: Errors = {}

function genericObjectFunction<K extends string, V>(obj: Record<K, V>): [K, V][] {
  return []
}

/*
 Argument of type 'Errors' is not assignable to parameter of type 'Record<string, never>'.
 Index signatures are incompatible.
 Type '{ key: string; message: string; }' is not assignable to type 'never'.
 */
genericObjectFunction(errors)

The types seem generally compatible though, as expected this is legal:

const errorRecord: Record<string, { key: string, message: string }> = errors

Expected behavior:
genericObjectFunction(errors) should compile.

Start with the minimal TypeScript 2.2.2 reproduction in the issue, focusing on genericObjectFunction and inference from the Errors index signature to Record. Done means genericObjectFunction(errors) compiles while preserving the demonstrated Record compatibility.