In src/index.tsx, the Foo component is a generic component with a type default.
If you remove the fallback, or add an extends, the error highlighting goes away.
If you run pnpm build, the generated type declaration is rendered perfectly fine.
The following screenshots were taken of my editor using the Dark Modern built-in VSCode theme,
all extensions disabled, and Semantic Highlighting enabled. The bug, however, isn't exclusive to
Semantic Highlighting.
Unmodified src/index.tsx
The generated types/index.d.ts
src/index.tsx after adding an extends to the generic
