fix #1684

Author: sumneko

changelog.md

@@ -1,5 +1,10 @@
 # changelog
 
+## 3.6.3
+* `FIX` [#1684]
+
+[#1684]: https://github.com/sumneko/lua-language-server/issues/1684
+
 ## 3.6.2
 `2022-11-10`
 * `FIX` incorrect type check for generic with nil

script/vm/type.lua

@@ -285,9 +285,11 @@ function vm.isSubType(uri, child, parent, mark, errs)
             local hasKnownType = 0
             for n in child:eachObject() do
                 if vm.getNodeName(n) then
-                    hasKnownType = hasKnownType + 1
-                    if vm.isSubType(uri, n, parent, mark, errs) == true then
+                    local res = vm.isSubType(uri, n, parent, mark, errs)
+                    if res == true then
                         return true
+                    elseif res == false then
+                        hasKnownType = hasKnownType + 1
                     end
                 end
             end
@@ -350,9 +352,11 @@ function vm.isSubType(uri, child, parent, mark, errs)
         local hasKnownType = 0
         for n in parent:eachObject() do
             if vm.getNodeName(n) then
-                hasKnownType = hasKnownType + 1
-                if vm.isSubType(uri, child, n, mark, errs) == true then
+                local res = vm.isSubType(uri, child, n, mark, errs)
+                if res == true then
                     return true
+                elseif res == false then
+                    hasKnownType = hasKnownType + 1
                 end
             end
             if n.type == 'doc.generic.name' then

test/diagnostics/type-check.lua

@@ -1119,6 +1119,16 @@ TEST [[
 local t = {{'a'}}
 ]]
 
+TEST [[
+local A = "Hello"
+local B = "World"
+
+---@alias myLiteralAliases `A` | `B`
+
+---@type myLiteralAliases
+local x = A
+]]
+
 config.remove(nil, 'Lua.diagnostics.disable', 'unused-local')
 config.remove(nil, 'Lua.diagnostics.disable', 'unused-function')
 config.remove(nil, 'Lua.diagnostics.disable', 'undefined-global')