Circular record cannot be assigned an empty record

[niedzielski]

TypeScript Version: 3.7.0-beta

Search Terms: recursive empty record

Code

const foo: Record<never, never> = {} // OK

interface RecordOfRecords extends Record<keyof any, RecordOfRecords> {}
const recordOfRecords: RecordOfRecords = {}
recordOfRecords.propA = {...(foo !== undefined ? {foo} : {})} // OK
recordOfRecords.propB = {...(foo && {foo})} // OK
recordOfRecords.propC = {...(foo !== undefined && {foo})} // Not OK
// ^Error:
//  Type '{} | { foo: Record<never, never>; }' is not assignable to type 'RecordOfRecords'.
//    Type '{}' is not assignable to type 'RecordOfRecords'.
//      Index signature is missing in type '{}'.(2322)

interface RecordOfRecordsOrEmpty extends Record<keyof any, RecordOfRecordsOrEmpty | {}> {}
const recordsOfRecordsOrEmpty: RecordOfRecordsOrEmpty = {}
recordsOfRecordsOrEmpty.propA = {...(foo !== undefined ? {foo} : {})} // OK
recordsOfRecordsOrEmpty.propB = {...(foo && {foo})} // OK
recordsOfRecordsOrEmpty.propC = {...(foo !== undefined && {foo})} // OK

Expected behavior: Empty objects are always assignable to Records.

Actual behavior: Empty objects are only assignable to the non-recursive records.

Playground Link

Related Issues: #25437

Edit: sorry, but I couldn't find this issue in the tracker although I'm almost certain it must exist. If possible, please link this to any existing (possibly closed) issue.