Preserve type parameter types in narrowing

Author: ahejlsberg

src/compiler/checker.ts

@@ -8682,7 +8682,7 @@ namespace ts {
                 // type. Otherwise, the types are completely unrelated, so narrow to an intersection of the
                 // two types.
                 const targetType = type.flags & TypeFlags.TypeParameter ? getApparentType(type) : type;
-                return isTypeSubtypeOf(candidate, targetType) ? candidate :
+                return isTypeSubtypeOf(candidate, type) ? candidate :
                     isTypeAssignableTo(type, candidate) ? type :
                     isTypeAssignableTo(candidate, targetType) ? candidate :
                     getIntersectionType([type, candidate]);