Incorrectly typed argument variant

TypeScript Version: 3.8.3

Search Terms:

Parameters, Array, Overloading, Type inference

Code

type VariantA = [(err: Error, data: string) => any]
type VariantB = [(data: string) => any, (err: Error) => any]
type Args = VariantA | VariantB
 
function fn (...rest: Args): void { /* do something */ }

fn((err, data) => {
  err.stack // Correct: Typed as Error
  data.charAt(0) // Correct: Typed as string
})

fn((data) => {
  data //  --> Error: Mistyped as any, should be string  <--
}, (err) => {
  err.stack // Correct: Typed as Error
})

Expected behavior:

If two functions are passed in (VariantB), the first paramter should be typed as data: string.

Actual behavior:

If two functions are passed in, the first function's parameter is typed as any.

Start with the minimal TypeScript reproduction in the issue and compare contextual typing for the one-callback and two-callback calls. Trace the type inference and overload handling for the union rest parameter, then verify that the first callback parameter is inferred as string without regressing the Error and data typings.