diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 9ee8fe6572848..bd2d5f99899bc 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -36221,9 +36221,16 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         const len = signature.parameters.length - (signatureHasRestParameter(signature) ? 1 : 0);
         for (let i = 0; i < len; i++) {
             const parameter = signature.parameters[i];
-            if (!getEffectiveTypeAnnotationNode(parameter.valueDeclaration as ParameterDeclaration)) {
-                const contextualParameterType = tryGetTypeAtPosition(context, i);
-                assignParameterType(parameter, contextualParameterType);
+            const declaration = parameter.valueDeclaration as ParameterDeclaration;
+            if (!getEffectiveTypeAnnotationNode(declaration)) {
+                let type = tryGetTypeAtPosition(context, i);
+                if (type && declaration.initializer) {
+                    let initializerType = checkDeclarationInitializer(declaration, CheckMode.Normal);
+                    if (!isTypeAssignableTo(initializerType, type) && isTypeAssignableTo(type, initializerType = widenTypeInferredFromInitializer(declaration, initializerType))) {
+                        type = initializerType;
+                    }
+                }
+                assignParameterType(parameter, type);
             }
         }
         if (signatureHasRestParameter(signature)) {
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.errors.txt b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.errors.txt
similarity index 90%
rename from tests/baselines/reference/contextuallyTypedParametersWithInitializers.errors.txt
rename to tests/baselines/reference/contextuallyTypedParametersWithInitializers1.errors.txt
index ead06513c5270..037a858524c4b 100644
--- a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.errors.txt
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.errors.txt
@@ -1,8 +1,8 @@
-contextuallyTypedParametersWithInitializers.ts(24,24): error TS7006: Parameter 'x' implicitly has an 'any' type.
-contextuallyTypedParametersWithInitializers.ts(40,5): error TS7006: Parameter 'x' implicitly has an 'any' type.
+contextuallyTypedParametersWithInitializers1.ts(24,24): error TS7006: Parameter 'x' implicitly has an 'any' type.
+contextuallyTypedParametersWithInitializers1.ts(40,5): error TS7006: Parameter 'x' implicitly has an 'any' type.
 
 
-==== contextuallyTypedParametersWithInitializers.ts (2 errors) ====
+==== contextuallyTypedParametersWithInitializers1.ts (2 errors) ====
     declare function id1<T>(input: T): T;
     declare function id2<T extends (x: any) => any>(input: T): T;
     declare function id3<T extends (x: { foo: any }) => any>(input: T): T;
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.js b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.js
similarity index 94%
rename from tests/baselines/reference/contextuallyTypedParametersWithInitializers.js
rename to tests/baselines/reference/contextuallyTypedParametersWithInitializers1.js
index 088fb6235d512..975f8af6aba26 100644
--- a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.js
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.js
@@ -1,6 +1,6 @@
-//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers.ts] ////
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers1.ts] ////
 
-//// [contextuallyTypedParametersWithInitializers.ts]
+//// [contextuallyTypedParametersWithInitializers1.ts]
 declare function id1<T>(input: T): T;
 declare function id2<T extends (x: any) => any>(input: T): T;
 declare function id3<T extends (x: { foo: any }) => any>(input: T): T;
@@ -86,7 +86,7 @@ const fz1 = (debug = true) => false;
 const fz2: Function = (debug = true) => false;
 
 
-//// [contextuallyTypedParametersWithInitializers.js]
+//// [contextuallyTypedParametersWithInitializers1.js]
 "use strict";
 Object.defineProperty(exports, "__esModule", { value: true });
 exports.executeSomething = void 0;
@@ -234,5 +234,5 @@ var fz2 = function (debug) {
 };
 
 
-//// [contextuallyTypedParametersWithInitializers.d.ts]
+//// [contextuallyTypedParametersWithInitializers1.d.ts]
 export declare function executeSomething(): Promise<string>;
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.symbols b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.symbols
similarity index 55%
rename from tests/baselines/reference/contextuallyTypedParametersWithInitializers.symbols
rename to tests/baselines/reference/contextuallyTypedParametersWithInitializers1.symbols
index 24e5287c0282a..b02818faea9c4 100644
--- a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.symbols
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.symbols
@@ -1,321 +1,321 @@
-//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers.ts] ////
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers1.ts] ////
 
-=== contextuallyTypedParametersWithInitializers.ts ===
+=== contextuallyTypedParametersWithInitializers1.ts ===
 declare function id1<T>(input: T): T;
->id1 : Symbol(id1, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 0))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 21))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 24))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 21))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 21))
+>id1 : Symbol(id1, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 0))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 21))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 24))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 21))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 21))
 
 declare function id2<T extends (x: any) => any>(input: T): T;
->id2 : Symbol(id2, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 37))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 21))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 32))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 48))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 21))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 21))
+>id2 : Symbol(id2, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 37))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 21))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 32))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 48))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 21))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 21))
 
 declare function id3<T extends (x: { foo: any }) => any>(input: T): T;
->id3 : Symbol(id3, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 61))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 21))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 32))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 36))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 57))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 21))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 21))
+>id3 : Symbol(id3, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 61))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 21))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 32))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 36))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 57))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 21))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 21))
 
 declare function id4<T extends (x: { foo?: number }) => any>(input: T): T;
->id4 : Symbol(id4, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 70))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 21))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 32))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 36))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 61))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 21))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 21))
+>id4 : Symbol(id4, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 70))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 21))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 32))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 36))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 61))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 21))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 21))
 
 declare function id5<T extends (x?: number) => any>(input: T): T;
->id5 : Symbol(id5, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 74))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 4, 21))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 4, 32))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 4, 52))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 4, 21))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 4, 21))
+>id5 : Symbol(id5, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 74))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 4, 21))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 4, 32))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 4, 52))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 4, 21))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 4, 21))
 
 const f10 = function ({ foo = 42 }) { return foo };
->f10 : Symbol(f10, Decl(contextuallyTypedParametersWithInitializers.ts, 6, 5))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 6, 23))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 6, 23))
+>f10 : Symbol(f10, Decl(contextuallyTypedParametersWithInitializers1.ts, 6, 5))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 6, 23))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 6, 23))
 
 const f11 = id1(function ({ foo = 42 }) { return foo });
->f11 : Symbol(f11, Decl(contextuallyTypedParametersWithInitializers.ts, 7, 5))
->id1 : Symbol(id1, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 0))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 7, 27))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 7, 27))
+>f11 : Symbol(f11, Decl(contextuallyTypedParametersWithInitializers1.ts, 7, 5))
+>id1 : Symbol(id1, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 0))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 7, 27))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 7, 27))
 
 const f12 = id2(function ({ foo = 42 }) { return foo });
->f12 : Symbol(f12, Decl(contextuallyTypedParametersWithInitializers.ts, 8, 5))
->id2 : Symbol(id2, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 37))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 8, 27))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 8, 27))
+>f12 : Symbol(f12, Decl(contextuallyTypedParametersWithInitializers1.ts, 8, 5))
+>id2 : Symbol(id2, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 37))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 8, 27))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 8, 27))
 
 const f13 = id3(function ({ foo = 42 }) { return foo });
->f13 : Symbol(f13, Decl(contextuallyTypedParametersWithInitializers.ts, 9, 5))
->id3 : Symbol(id3, Decl(contextuallyTypedParametersWithInitializers.ts, 1, 61))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 9, 27))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 9, 27))
+>f13 : Symbol(f13, Decl(contextuallyTypedParametersWithInitializers1.ts, 9, 5))
+>id3 : Symbol(id3, Decl(contextuallyTypedParametersWithInitializers1.ts, 1, 61))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 9, 27))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 9, 27))
 
 const f14 = id4(function ({ foo = 42 }) { return foo });
->f14 : Symbol(f14, Decl(contextuallyTypedParametersWithInitializers.ts, 10, 5))
->id4 : Symbol(id4, Decl(contextuallyTypedParametersWithInitializers.ts, 2, 70))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 10, 27))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 10, 27))
+>f14 : Symbol(f14, Decl(contextuallyTypedParametersWithInitializers1.ts, 10, 5))
+>id4 : Symbol(id4, Decl(contextuallyTypedParametersWithInitializers1.ts, 2, 70))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 10, 27))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 10, 27))
 
 const f20 = function (foo = 42) { return foo };
->f20 : Symbol(f20, Decl(contextuallyTypedParametersWithInitializers.ts, 12, 5))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 12, 22))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 12, 22))
+>f20 : Symbol(f20, Decl(contextuallyTypedParametersWithInitializers1.ts, 12, 5))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 12, 22))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 12, 22))
 
 const f21 = id1(function (foo = 42) { return foo });
->f21 : Symbol(f21, Decl(contextuallyTypedParametersWithInitializers.ts, 13, 5))
->id1 : Symbol(id1, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 0))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 13, 26))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 13, 26))
+>f21 : Symbol(f21, Decl(contextuallyTypedParametersWithInitializers1.ts, 13, 5))
+>id1 : Symbol(id1, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 0))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 13, 26))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 13, 26))
 
 const f22 = id2(function (foo = 42) { return foo });
->f22 : Symbol(f22, Decl(contextuallyTypedParametersWithInitializers.ts, 14, 5))
->id2 : Symbol(id2, Decl(contextuallyTypedParametersWithInitializers.ts, 0, 37))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 14, 26))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 14, 26))
+>f22 : Symbol(f22, Decl(contextuallyTypedParametersWithInitializers1.ts, 14, 5))
+>id2 : Symbol(id2, Decl(contextuallyTypedParametersWithInitializers1.ts, 0, 37))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 14, 26))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 14, 26))
 
 const f25 = id5(function (foo = 42) { return foo });
->f25 : Symbol(f25, Decl(contextuallyTypedParametersWithInitializers.ts, 15, 5))
->id5 : Symbol(id5, Decl(contextuallyTypedParametersWithInitializers.ts, 3, 74))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 15, 26))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 15, 26))
+>f25 : Symbol(f25, Decl(contextuallyTypedParametersWithInitializers1.ts, 15, 5))
+>id5 : Symbol(id5, Decl(contextuallyTypedParametersWithInitializers1.ts, 3, 74))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 15, 26))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 15, 26))
 
 const f1 = (x = 1) => 0;  // number
->f1 : Symbol(f1, Decl(contextuallyTypedParametersWithInitializers.ts, 17, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 17, 12))
+>f1 : Symbol(f1, Decl(contextuallyTypedParametersWithInitializers1.ts, 17, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 17, 12))
 
 const f2: any = (x = 1) => 0;  // number
->f2 : Symbol(f2, Decl(contextuallyTypedParametersWithInitializers.ts, 18, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 18, 17))
+>f2 : Symbol(f2, Decl(contextuallyTypedParametersWithInitializers1.ts, 18, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 18, 17))
 
 const f3: unknown = (x = 1) => 0;  // number
->f3 : Symbol(f3, Decl(contextuallyTypedParametersWithInitializers.ts, 19, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 19, 21))
+>f3 : Symbol(f3, Decl(contextuallyTypedParametersWithInitializers1.ts, 19, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 19, 21))
 
 const f4: Function = (x = 1) => 0;  // number
->f4 : Symbol(f4, Decl(contextuallyTypedParametersWithInitializers.ts, 20, 5))
+>f4 : Symbol(f4, Decl(contextuallyTypedParametersWithInitializers1.ts, 20, 5))
 >Function : Symbol(Function, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 20, 22))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 20, 22))
 
 const f5: (...args: any[]) => any = (x = 1) => 0;  // any
->f5 : Symbol(f5, Decl(contextuallyTypedParametersWithInitializers.ts, 21, 5))
->args : Symbol(args, Decl(contextuallyTypedParametersWithInitializers.ts, 21, 11))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 21, 37))
+>f5 : Symbol(f5, Decl(contextuallyTypedParametersWithInitializers1.ts, 21, 5))
+>args : Symbol(args, Decl(contextuallyTypedParametersWithInitializers1.ts, 21, 11))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 21, 37))
 
 const f6: () => any = (x = 1) => 0;  // number
->f6 : Symbol(f6, Decl(contextuallyTypedParametersWithInitializers.ts, 22, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 22, 23))
+>f6 : Symbol(f6, Decl(contextuallyTypedParametersWithInitializers1.ts, 22, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 22, 23))
 
 const f7: () => any = (x?) => 0;  // Implicit any error
->f7 : Symbol(f7, Decl(contextuallyTypedParametersWithInitializers.ts, 23, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 23, 23))
+>f7 : Symbol(f7, Decl(contextuallyTypedParametersWithInitializers1.ts, 23, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 23, 23))
 
 const f8: () => any = (...x) => 0;  // []
->f8 : Symbol(f8, Decl(contextuallyTypedParametersWithInitializers.ts, 24, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 24, 23))
+>f8 : Symbol(f8, Decl(contextuallyTypedParametersWithInitializers1.ts, 24, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 24, 23))
 
 declare function g1<T>(x: T): T;
->g1 : Symbol(g1, Decl(contextuallyTypedParametersWithInitializers.ts, 24, 34))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 26, 20))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 26, 23))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 26, 20))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 26, 20))
+>g1 : Symbol(g1, Decl(contextuallyTypedParametersWithInitializers1.ts, 24, 34))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 26, 20))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 26, 23))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 26, 20))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 26, 20))
 
 declare function g2<T extends any>(x: T): T;
->g2 : Symbol(g2, Decl(contextuallyTypedParametersWithInitializers.ts, 26, 32))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 27, 20))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 27, 35))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 27, 20))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 27, 20))
+>g2 : Symbol(g2, Decl(contextuallyTypedParametersWithInitializers1.ts, 26, 32))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 27, 20))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 27, 35))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 27, 20))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 27, 20))
 
 declare function g3<T extends unknown>(x: T): T;
->g3 : Symbol(g3, Decl(contextuallyTypedParametersWithInitializers.ts, 27, 44))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 28, 20))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 28, 39))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 28, 20))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 28, 20))
+>g3 : Symbol(g3, Decl(contextuallyTypedParametersWithInitializers1.ts, 27, 44))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 28, 20))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 28, 39))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 28, 20))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 28, 20))
 
 declare function g4<T extends Function>(x: T): T;
->g4 : Symbol(g4, Decl(contextuallyTypedParametersWithInitializers.ts, 28, 48))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 29, 20))
+>g4 : Symbol(g4, Decl(contextuallyTypedParametersWithInitializers1.ts, 28, 48))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 29, 20))
 >Function : Symbol(Function, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 29, 40))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 29, 20))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 29, 20))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 29, 40))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 29, 20))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 29, 20))
 
 declare function g5<T extends (...args: any[]) => any>(x: T): T;
->g5 : Symbol(g5, Decl(contextuallyTypedParametersWithInitializers.ts, 29, 49))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 20))
->args : Symbol(args, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 31))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 55))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 20))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 20))
+>g5 : Symbol(g5, Decl(contextuallyTypedParametersWithInitializers1.ts, 29, 49))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 20))
+>args : Symbol(args, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 31))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 55))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 20))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 20))
 
 declare function g6<T extends () => any>(x: T): T;
->g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 64))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 31, 20))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 31, 41))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 31, 20))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 31, 20))
+>g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 64))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 31, 20))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 31, 41))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 31, 20))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 31, 20))
 
 g1((x = 1) => 0);  // number
->g1 : Symbol(g1, Decl(contextuallyTypedParametersWithInitializers.ts, 24, 34))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 33, 4))
+>g1 : Symbol(g1, Decl(contextuallyTypedParametersWithInitializers1.ts, 24, 34))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 33, 4))
 
 g2((x = 1) => 0);  // number
->g2 : Symbol(g2, Decl(contextuallyTypedParametersWithInitializers.ts, 26, 32))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 34, 4))
+>g2 : Symbol(g2, Decl(contextuallyTypedParametersWithInitializers1.ts, 26, 32))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 34, 4))
 
 g3((x = 1) => 0);  // number
->g3 : Symbol(g3, Decl(contextuallyTypedParametersWithInitializers.ts, 27, 44))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 35, 4))
+>g3 : Symbol(g3, Decl(contextuallyTypedParametersWithInitializers1.ts, 27, 44))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 35, 4))
 
 g4((x = 1) => 0);  // number
->g4 : Symbol(g4, Decl(contextuallyTypedParametersWithInitializers.ts, 28, 48))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 36, 4))
+>g4 : Symbol(g4, Decl(contextuallyTypedParametersWithInitializers1.ts, 28, 48))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 36, 4))
 
 g5((x = 1) => 0);  // any
->g5 : Symbol(g5, Decl(contextuallyTypedParametersWithInitializers.ts, 29, 49))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 37, 4))
+>g5 : Symbol(g5, Decl(contextuallyTypedParametersWithInitializers1.ts, 29, 49))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 37, 4))
 
 g6((x = 1) => 0);  // number
->g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 64))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 38, 4))
+>g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 64))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 38, 4))
 
 g6((x?) => 0);     // Implicit any error
->g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 64))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 39, 4))
+>g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 64))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 39, 4))
 
 g6((...x) => 0);   // []
->g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers.ts, 30, 64))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 40, 4))
+>g6 : Symbol(g6, Decl(contextuallyTypedParametersWithInitializers1.ts, 30, 64))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 40, 4))
 
 // Repro from #28816
 
 function id<T>(input: T): T { return input }
->id : Symbol(id, Decl(contextuallyTypedParametersWithInitializers.ts, 40, 16))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 12))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 15))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 12))
->T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 12))
->input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 15))
+>id : Symbol(id, Decl(contextuallyTypedParametersWithInitializers1.ts, 40, 16))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 12))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 15))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 12))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 12))
+>input : Symbol(input, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 15))
 
 function getFoo ({ foo = 42 }) {
->getFoo : Symbol(getFoo, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 44))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 46, 18))
+>getFoo : Symbol(getFoo, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 44))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 46, 18))
 
   return foo;
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 46, 18))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 46, 18))
 }
 
 const newGetFoo = id(getFoo);
->newGetFoo : Symbol(newGetFoo, Decl(contextuallyTypedParametersWithInitializers.ts, 50, 5))
->id : Symbol(id, Decl(contextuallyTypedParametersWithInitializers.ts, 40, 16))
->getFoo : Symbol(getFoo, Decl(contextuallyTypedParametersWithInitializers.ts, 44, 44))
+>newGetFoo : Symbol(newGetFoo, Decl(contextuallyTypedParametersWithInitializers1.ts, 50, 5))
+>id : Symbol(id, Decl(contextuallyTypedParametersWithInitializers1.ts, 40, 16))
+>getFoo : Symbol(getFoo, Decl(contextuallyTypedParametersWithInitializers1.ts, 44, 44))
 
 const newGetFoo2 = id(function getFoo ({ foo = 42 }) {
->newGetFoo2 : Symbol(newGetFoo2, Decl(contextuallyTypedParametersWithInitializers.ts, 51, 5))
->id : Symbol(id, Decl(contextuallyTypedParametersWithInitializers.ts, 40, 16))
->getFoo : Symbol(getFoo, Decl(contextuallyTypedParametersWithInitializers.ts, 51, 22))
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 51, 40))
+>newGetFoo2 : Symbol(newGetFoo2, Decl(contextuallyTypedParametersWithInitializers1.ts, 51, 5))
+>id : Symbol(id, Decl(contextuallyTypedParametersWithInitializers1.ts, 40, 16))
+>getFoo : Symbol(getFoo, Decl(contextuallyTypedParametersWithInitializers1.ts, 51, 22))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 51, 40))
 
   return foo;
->foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers.ts, 51, 40))
+>foo : Symbol(foo, Decl(contextuallyTypedParametersWithInitializers1.ts, 51, 40))
 
 });
 
 // Repro from comment in #30840
 
 declare function memoize<F extends Function>(func: F): F;
->memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers.ts, 53, 3))
->F : Symbol(F, Decl(contextuallyTypedParametersWithInitializers.ts, 57, 25))
+>memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers1.ts, 53, 3))
+>F : Symbol(F, Decl(contextuallyTypedParametersWithInitializers1.ts, 57, 25))
 >Function : Symbol(Function, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
->func : Symbol(func, Decl(contextuallyTypedParametersWithInitializers.ts, 57, 45))
->F : Symbol(F, Decl(contextuallyTypedParametersWithInitializers.ts, 57, 25))
->F : Symbol(F, Decl(contextuallyTypedParametersWithInitializers.ts, 57, 25))
+>func : Symbol(func, Decl(contextuallyTypedParametersWithInitializers1.ts, 57, 45))
+>F : Symbol(F, Decl(contextuallyTypedParametersWithInitializers1.ts, 57, 25))
+>F : Symbol(F, Decl(contextuallyTypedParametersWithInitializers1.ts, 57, 25))
 
 function add(x: number, y = 0): number {
->add : Symbol(add, Decl(contextuallyTypedParametersWithInitializers.ts, 57, 57))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 59, 13))
->y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers.ts, 59, 23))
+>add : Symbol(add, Decl(contextuallyTypedParametersWithInitializers1.ts, 57, 57))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 59, 13))
+>y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers1.ts, 59, 23))
 
     return x + y;
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 59, 13))
->y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers.ts, 59, 23))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 59, 13))
+>y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers1.ts, 59, 23))
 }
 const memoizedAdd = memoize(add);
->memoizedAdd : Symbol(memoizedAdd, Decl(contextuallyTypedParametersWithInitializers.ts, 62, 5))
->memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers.ts, 53, 3))
->add : Symbol(add, Decl(contextuallyTypedParametersWithInitializers.ts, 57, 57))
+>memoizedAdd : Symbol(memoizedAdd, Decl(contextuallyTypedParametersWithInitializers1.ts, 62, 5))
+>memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers1.ts, 53, 3))
+>add : Symbol(add, Decl(contextuallyTypedParametersWithInitializers1.ts, 57, 57))
 
 const add2 = (x: number, y = 0): number => x + y;
->add2 : Symbol(add2, Decl(contextuallyTypedParametersWithInitializers.ts, 64, 5))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 64, 14))
->y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers.ts, 64, 24))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 64, 14))
->y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers.ts, 64, 24))
+>add2 : Symbol(add2, Decl(contextuallyTypedParametersWithInitializers1.ts, 64, 5))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 64, 14))
+>y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers1.ts, 64, 24))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 64, 14))
+>y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers1.ts, 64, 24))
 
 const memoizedAdd2 = memoize(add2);
->memoizedAdd2 : Symbol(memoizedAdd2, Decl(contextuallyTypedParametersWithInitializers.ts, 65, 5))
->memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers.ts, 53, 3))
->add2 : Symbol(add2, Decl(contextuallyTypedParametersWithInitializers.ts, 64, 5))
+>memoizedAdd2 : Symbol(memoizedAdd2, Decl(contextuallyTypedParametersWithInitializers1.ts, 65, 5))
+>memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers1.ts, 53, 3))
+>add2 : Symbol(add2, Decl(contextuallyTypedParametersWithInitializers1.ts, 64, 5))
 
 const memoizedAdd3 = memoize((x: number, y = 0): number => x + y);
->memoizedAdd3 : Symbol(memoizedAdd3, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 5))
->memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers.ts, 53, 3))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 30))
->y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 40))
->x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 30))
->y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 40))
+>memoizedAdd3 : Symbol(memoizedAdd3, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 5))
+>memoize : Symbol(memoize, Decl(contextuallyTypedParametersWithInitializers1.ts, 53, 3))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 30))
+>y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 40))
+>x : Symbol(x, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 30))
+>y : Symbol(y, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 40))
 
 // Repro from #36052
 
 declare function execute(script: string | Function): Promise<string>;
->execute : Symbol(execute, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 66))
->script : Symbol(script, Decl(contextuallyTypedParametersWithInitializers.ts, 71, 25))
+>execute : Symbol(execute, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 66))
+>script : Symbol(script, Decl(contextuallyTypedParametersWithInitializers1.ts, 71, 25))
 >Function : Symbol(Function, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
 >Promise : Symbol(Promise, Decl(lib.es5.d.ts, --, --))
   
 export function executeSomething() {
->executeSomething : Symbol(executeSomething, Decl(contextuallyTypedParametersWithInitializers.ts, 71, 69))
+>executeSomething : Symbol(executeSomething, Decl(contextuallyTypedParametersWithInitializers1.ts, 71, 69))
 
     return execute((root: HTMLElement, debug = true) => {
->execute : Symbol(execute, Decl(contextuallyTypedParametersWithInitializers.ts, 67, 66))
->root : Symbol(root, Decl(contextuallyTypedParametersWithInitializers.ts, 74, 20))
+>execute : Symbol(execute, Decl(contextuallyTypedParametersWithInitializers1.ts, 67, 66))
+>root : Symbol(root, Decl(contextuallyTypedParametersWithInitializers1.ts, 74, 20))
 >HTMLElement : Symbol(HTMLElement, Decl(lib.dom.d.ts, --, --), Decl(lib.dom.d.ts, --, --))
->debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers.ts, 74, 38))
+>debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers1.ts, 74, 38))
 
         if (debug) {
->debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers.ts, 74, 38))
+>debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers1.ts, 74, 38))
 
             root.innerHTML = '';
 >root.innerHTML : Symbol(InnerHTML.innerHTML, Decl(lib.dom.d.ts, --, --))
->root : Symbol(root, Decl(contextuallyTypedParametersWithInitializers.ts, 74, 20))
+>root : Symbol(root, Decl(contextuallyTypedParametersWithInitializers1.ts, 74, 20))
 >innerHTML : Symbol(InnerHTML.innerHTML, Decl(lib.dom.d.ts, --, --))
         }
     });
 }
 
 const fz1 = (debug = true) => false;
->fz1 : Symbol(fz1, Decl(contextuallyTypedParametersWithInitializers.ts, 81, 5))
->debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers.ts, 81, 13))
+>fz1 : Symbol(fz1, Decl(contextuallyTypedParametersWithInitializers1.ts, 81, 5))
+>debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers1.ts, 81, 13))
 
 const fz2: Function = (debug = true) => false;
->fz2 : Symbol(fz2, Decl(contextuallyTypedParametersWithInitializers.ts, 82, 5))
+>fz2 : Symbol(fz2, Decl(contextuallyTypedParametersWithInitializers1.ts, 82, 5))
 >Function : Symbol(Function, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
->debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers.ts, 82, 23))
+>debug : Symbol(debug, Decl(contextuallyTypedParametersWithInitializers1.ts, 82, 23))
 
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.types b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.types
similarity index 95%
rename from tests/baselines/reference/contextuallyTypedParametersWithInitializers.types
rename to tests/baselines/reference/contextuallyTypedParametersWithInitializers1.types
index e55c3685d7ab8..5a178b7bb7efb 100644
--- a/tests/baselines/reference/contextuallyTypedParametersWithInitializers.types
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers1.types
@@ -1,6 +1,6 @@
-//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers.ts] ////
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers1.ts] ////
 
-=== contextuallyTypedParametersWithInitializers.ts ===
+=== contextuallyTypedParametersWithInitializers1.ts ===
 declare function id1<T>(input: T): T;
 >id1 : <T>(input: T) => T
 >input : T
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers2.symbols b/tests/baselines/reference/contextuallyTypedParametersWithInitializers2.symbols
new file mode 100644
index 0000000000000..53a8082c893bf
--- /dev/null
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers2.symbols
@@ -0,0 +1,58 @@
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers2.ts] ////
+
+=== contextuallyTypedParametersWithInitializers2.ts ===
+declare function test1<
+>test1 : Symbol(test1, Decl(contextuallyTypedParametersWithInitializers2.ts, 0, 0))
+
+  TContext,
+>TContext : Symbol(TContext, Decl(contextuallyTypedParametersWithInitializers2.ts, 0, 23))
+
+  TMethods extends Record<string, (ctx: TContext, ...args: never[]) => unknown>,
+>TMethods : Symbol(TMethods, Decl(contextuallyTypedParametersWithInitializers2.ts, 1, 11))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+>ctx : Symbol(ctx, Decl(contextuallyTypedParametersWithInitializers2.ts, 2, 35))
+>TContext : Symbol(TContext, Decl(contextuallyTypedParametersWithInitializers2.ts, 0, 23))
+>args : Symbol(args, Decl(contextuallyTypedParametersWithInitializers2.ts, 2, 49))
+
+>(context: TContext, methods: TMethods): void;
+>context : Symbol(context, Decl(contextuallyTypedParametersWithInitializers2.ts, 3, 2))
+>TContext : Symbol(TContext, Decl(contextuallyTypedParametersWithInitializers2.ts, 0, 23))
+>methods : Symbol(methods, Decl(contextuallyTypedParametersWithInitializers2.ts, 3, 20))
+>TMethods : Symbol(TMethods, Decl(contextuallyTypedParametersWithInitializers2.ts, 1, 11))
+
+test1(
+>test1 : Symbol(test1, Decl(contextuallyTypedParametersWithInitializers2.ts, 0, 0))
+  {
+    count: 0,
+>count : Symbol(count, Decl(contextuallyTypedParametersWithInitializers2.ts, 6, 3))
+
+  },
+  {
+    checkLimit: (ctx, max = 500) => {},
+>checkLimit : Symbol(checkLimit, Decl(contextuallyTypedParametersWithInitializers2.ts, 9, 3))
+>ctx : Symbol(ctx, Decl(contextuallyTypedParametersWithInitializers2.ts, 10, 17))
+>max : Symbol(max, Decl(contextuallyTypedParametersWithInitializers2.ts, 10, 21))
+
+    hasAccess: (ctx, user: { name: string }) => {},
+>hasAccess : Symbol(hasAccess, Decl(contextuallyTypedParametersWithInitializers2.ts, 10, 39))
+>ctx : Symbol(ctx, Decl(contextuallyTypedParametersWithInitializers2.ts, 11, 16))
+>user : Symbol(user, Decl(contextuallyTypedParametersWithInitializers2.ts, 11, 20))
+>name : Symbol(name, Decl(contextuallyTypedParametersWithInitializers2.ts, 11, 28))
+
+  },
+);
+
+declare const num: number;
+>num : Symbol(num, Decl(contextuallyTypedParametersWithInitializers2.ts, 15, 13))
+
+const test2: (arg: 1 | 2) => void = (arg = num) => {};
+>test2 : Symbol(test2, Decl(contextuallyTypedParametersWithInitializers2.ts, 16, 5))
+>arg : Symbol(arg, Decl(contextuallyTypedParametersWithInitializers2.ts, 16, 14))
+>arg : Symbol(arg, Decl(contextuallyTypedParametersWithInitializers2.ts, 16, 37))
+>num : Symbol(num, Decl(contextuallyTypedParametersWithInitializers2.ts, 15, 13))
+
+const test3: (arg: number) => void = (arg = 1) => {};
+>test3 : Symbol(test3, Decl(contextuallyTypedParametersWithInitializers2.ts, 18, 5))
+>arg : Symbol(arg, Decl(contextuallyTypedParametersWithInitializers2.ts, 18, 14))
+>arg : Symbol(arg, Decl(contextuallyTypedParametersWithInitializers2.ts, 18, 38))
+
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers2.types b/tests/baselines/reference/contextuallyTypedParametersWithInitializers2.types
new file mode 100644
index 0000000000000..cc18f89dd35f9
--- /dev/null
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers2.types
@@ -0,0 +1,63 @@
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers2.ts] ////
+
+=== contextuallyTypedParametersWithInitializers2.ts ===
+declare function test1<
+>test1 : <TContext, TMethods extends Record<string, (ctx: TContext, ...args: never[]) => unknown>>(context: TContext, methods: TMethods) => void
+
+  TContext,
+  TMethods extends Record<string, (ctx: TContext, ...args: never[]) => unknown>,
+>ctx : TContext
+>args : never[]
+
+>(context: TContext, methods: TMethods): void;
+>context : TContext
+>methods : TMethods
+
+test1(
+>test1(  {    count: 0,  },  {    checkLimit: (ctx, max = 500) => {},    hasAccess: (ctx, user: { name: string }) => {},  },) : void
+>test1 : <TContext, TMethods extends Record<string, (ctx: TContext, ...args: never[]) => unknown>>(context: TContext, methods: TMethods) => void
+  {
+>{    count: 0,  } : { count: number; }
+
+    count: 0,
+>count : number
+>0 : 0
+
+  },
+  {
+>{    checkLimit: (ctx, max = 500) => {},    hasAccess: (ctx, user: { name: string }) => {},  } : { checkLimit: (ctx: { count: number; }, max?: number) => void; hasAccess: (ctx: { count: number; }, user: {    name: string;}) => void; }
+
+    checkLimit: (ctx, max = 500) => {},
+>checkLimit : (ctx: { count: number; }, max?: number) => void
+>(ctx, max = 500) => {} : (ctx: { count: number; }, max?: number) => void
+>ctx : { count: number; }
+>max : number
+>500 : 500
+
+    hasAccess: (ctx, user: { name: string }) => {},
+>hasAccess : (ctx: { count: number; }, user: {    name: string;}) => void
+>(ctx, user: { name: string }) => {} : (ctx: { count: number; }, user: {    name: string;}) => void
+>ctx : { count: number; }
+>user : { name: string; }
+>name : string
+
+  },
+);
+
+declare const num: number;
+>num : number
+
+const test2: (arg: 1 | 2) => void = (arg = num) => {};
+>test2 : (arg: 1 | 2) => void
+>arg : 1 | 2
+>(arg = num) => {} : (arg?: number) => void
+>arg : number
+>num : number
+
+const test3: (arg: number) => void = (arg = 1) => {};
+>test3 : (arg: number) => void
+>arg : number
+>(arg = 1) => {} : (arg?: number) => void
+>arg : number
+>1 : 1
+
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers3.symbols b/tests/baselines/reference/contextuallyTypedParametersWithInitializers3.symbols
new file mode 100644
index 0000000000000..5e59d656f61ca
--- /dev/null
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers3.symbols
@@ -0,0 +1,40 @@
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers3.ts] ////
+
+=== contextuallyTypedParametersWithInitializers3.ts ===
+type CanvasDirection = "RIGHT" | "LEFT";
+>CanvasDirection : Symbol(CanvasDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 0, 0))
+
+interface GraphActions {
+>GraphActions : Symbol(GraphActions, Decl(contextuallyTypedParametersWithInitializers3.ts, 0, 40))
+
+  setDirection: (direction: CanvasDirection) => void;
+>setDirection : Symbol(GraphActions.setDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 2, 24))
+>direction : Symbol(direction, Decl(contextuallyTypedParametersWithInitializers3.ts, 3, 17))
+>CanvasDirection : Symbol(CanvasDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 0, 0))
+}
+
+export declare function create<T>(config: T): void;
+>create : Symbol(create, Decl(contextuallyTypedParametersWithInitializers3.ts, 4, 1))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers3.ts, 6, 31))
+>config : Symbol(config, Decl(contextuallyTypedParametersWithInitializers3.ts, 6, 34))
+>T : Symbol(T, Decl(contextuallyTypedParametersWithInitializers3.ts, 6, 31))
+
+declare function takesDirection(direction: CanvasDirection): void;
+>takesDirection : Symbol(takesDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 6, 51))
+>direction : Symbol(direction, Decl(contextuallyTypedParametersWithInitializers3.ts, 8, 32))
+>CanvasDirection : Symbol(CanvasDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 0, 0))
+
+create<GraphActions>({
+>create : Symbol(create, Decl(contextuallyTypedParametersWithInitializers3.ts, 4, 1))
+>GraphActions : Symbol(GraphActions, Decl(contextuallyTypedParametersWithInitializers3.ts, 0, 40))
+
+  setDirection: (direction = "RIGHT") => {
+>setDirection : Symbol(setDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 10, 22))
+>direction : Symbol(direction, Decl(contextuallyTypedParametersWithInitializers3.ts, 11, 17))
+
+    takesDirection(direction);
+>takesDirection : Symbol(takesDirection, Decl(contextuallyTypedParametersWithInitializers3.ts, 6, 51))
+>direction : Symbol(direction, Decl(contextuallyTypedParametersWithInitializers3.ts, 11, 17))
+
+  },
+});
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers3.types b/tests/baselines/reference/contextuallyTypedParametersWithInitializers3.types
new file mode 100644
index 0000000000000..096e964c7a1f7
--- /dev/null
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers3.types
@@ -0,0 +1,38 @@
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers3.ts] ////
+
+=== contextuallyTypedParametersWithInitializers3.ts ===
+type CanvasDirection = "RIGHT" | "LEFT";
+>CanvasDirection : "RIGHT" | "LEFT"
+
+interface GraphActions {
+  setDirection: (direction: CanvasDirection) => void;
+>setDirection : (direction: CanvasDirection) => void
+>direction : CanvasDirection
+}
+
+export declare function create<T>(config: T): void;
+>create : <T>(config: T) => void
+>config : T
+
+declare function takesDirection(direction: CanvasDirection): void;
+>takesDirection : (direction: CanvasDirection) => void
+>direction : CanvasDirection
+
+create<GraphActions>({
+>create<GraphActions>({  setDirection: (direction = "RIGHT") => {    takesDirection(direction);  },}) : void
+>create : <T>(config: T) => void
+>{  setDirection: (direction = "RIGHT") => {    takesDirection(direction);  },} : { setDirection: (direction?: CanvasDirection) => void; }
+
+  setDirection: (direction = "RIGHT") => {
+>setDirection : (direction?: CanvasDirection) => void
+>(direction = "RIGHT") => {    takesDirection(direction);  } : (direction?: CanvasDirection) => void
+>direction : CanvasDirection
+>"RIGHT" : "RIGHT"
+
+    takesDirection(direction);
+>takesDirection(direction) : void
+>takesDirection : (direction: CanvasDirection) => void
+>direction : CanvasDirection
+
+  },
+});
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers4.symbols b/tests/baselines/reference/contextuallyTypedParametersWithInitializers4.symbols
new file mode 100644
index 0000000000000..9f003f9d3ca65
--- /dev/null
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers4.symbols
@@ -0,0 +1,38 @@
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers4.ts] ////
+
+=== contextuallyTypedParametersWithInitializers4.ts ===
+declare function test<
+>test : Symbol(test, Decl(contextuallyTypedParametersWithInitializers4.ts, 0, 0))
+
+  TContext,
+>TContext : Symbol(TContext, Decl(contextuallyTypedParametersWithInitializers4.ts, 0, 22))
+
+  TMethods extends Record<string, (ctx: TContext, ...args: (1 | 2)[]) => unknown>,
+>TMethods : Symbol(TMethods, Decl(contextuallyTypedParametersWithInitializers4.ts, 1, 11))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+>ctx : Symbol(ctx, Decl(contextuallyTypedParametersWithInitializers4.ts, 2, 35))
+>TContext : Symbol(TContext, Decl(contextuallyTypedParametersWithInitializers4.ts, 0, 22))
+>args : Symbol(args, Decl(contextuallyTypedParametersWithInitializers4.ts, 2, 49))
+
+>(context: TContext, methods: TMethods): void;
+>context : Symbol(context, Decl(contextuallyTypedParametersWithInitializers4.ts, 3, 2))
+>TContext : Symbol(TContext, Decl(contextuallyTypedParametersWithInitializers4.ts, 0, 22))
+>methods : Symbol(methods, Decl(contextuallyTypedParametersWithInitializers4.ts, 3, 20))
+>TMethods : Symbol(TMethods, Decl(contextuallyTypedParametersWithInitializers4.ts, 1, 11))
+
+test(
+>test : Symbol(test, Decl(contextuallyTypedParametersWithInitializers4.ts, 0, 0))
+  {
+    count: 0,
+>count : Symbol(count, Decl(contextuallyTypedParametersWithInitializers4.ts, 6, 3))
+
+  },
+  {
+    checkLimit: (ctx, max = 3) => {},
+>checkLimit : Symbol(checkLimit, Decl(contextuallyTypedParametersWithInitializers4.ts, 9, 3))
+>ctx : Symbol(ctx, Decl(contextuallyTypedParametersWithInitializers4.ts, 10, 17))
+>max : Symbol(max, Decl(contextuallyTypedParametersWithInitializers4.ts, 10, 21))
+
+  },
+);
+
diff --git a/tests/baselines/reference/contextuallyTypedParametersWithInitializers4.types b/tests/baselines/reference/contextuallyTypedParametersWithInitializers4.types
new file mode 100644
index 0000000000000..66dd8aa532828
--- /dev/null
+++ b/tests/baselines/reference/contextuallyTypedParametersWithInitializers4.types
@@ -0,0 +1,39 @@
+//// [tests/cases/compiler/contextuallyTypedParametersWithInitializers4.ts] ////
+
+=== contextuallyTypedParametersWithInitializers4.ts ===
+declare function test<
+>test : <TContext, TMethods extends Record<string, (ctx: TContext, ...args: (1 | 2)[]) => unknown>>(context: TContext, methods: TMethods) => void
+
+  TContext,
+  TMethods extends Record<string, (ctx: TContext, ...args: (1 | 2)[]) => unknown>,
+>ctx : TContext
+>args : (1 | 2)[]
+
+>(context: TContext, methods: TMethods): void;
+>context : TContext
+>methods : TMethods
+
+test(
+>test(  {    count: 0,  },  {    checkLimit: (ctx, max = 3) => {},  },) : void
+>test : <TContext, TMethods extends Record<string, (ctx: TContext, ...args: (1 | 2)[]) => unknown>>(context: TContext, methods: TMethods) => void
+  {
+>{    count: 0,  } : { count: number; }
+
+    count: 0,
+>count : number
+>0 : 0
+
+  },
+  {
+>{    checkLimit: (ctx, max = 3) => {},  } : { checkLimit: (ctx: { count: number; }, max?: number) => void; }
+
+    checkLimit: (ctx, max = 3) => {},
+>checkLimit : (ctx: { count: number; }, max?: number) => void
+>(ctx, max = 3) => {} : (ctx: { count: number; }, max?: number) => void
+>ctx : { count: number; }
+>max : number
+>3 : 3
+
+  },
+);
+
diff --git a/tests/cases/compiler/contextuallyTypedParametersWithInitializers.ts b/tests/cases/compiler/contextuallyTypedParametersWithInitializers1.ts
similarity index 100%
rename from tests/cases/compiler/contextuallyTypedParametersWithInitializers.ts
rename to tests/cases/compiler/contextuallyTypedParametersWithInitializers1.ts
diff --git a/tests/cases/compiler/contextuallyTypedParametersWithInitializers2.ts b/tests/cases/compiler/contextuallyTypedParametersWithInitializers2.ts
new file mode 100644
index 0000000000000..d80e45ad859f0
--- /dev/null
+++ b/tests/cases/compiler/contextuallyTypedParametersWithInitializers2.ts
@@ -0,0 +1,22 @@
+// @strict: true
+// @noEmit: true
+
+declare function test1<
+  TContext,
+  TMethods extends Record<string, (ctx: TContext, ...args: never[]) => unknown>,
+>(context: TContext, methods: TMethods): void;
+
+test1(
+  {
+    count: 0,
+  },
+  {
+    checkLimit: (ctx, max = 500) => {},
+    hasAccess: (ctx, user: { name: string }) => {},
+  },
+);
+
+declare const num: number;
+const test2: (arg: 1 | 2) => void = (arg = num) => {};
+
+const test3: (arg: number) => void = (arg = 1) => {};
diff --git a/tests/cases/compiler/contextuallyTypedParametersWithInitializers3.ts b/tests/cases/compiler/contextuallyTypedParametersWithInitializers3.ts
new file mode 100644
index 0000000000000..25b4dd9391277
--- /dev/null
+++ b/tests/cases/compiler/contextuallyTypedParametersWithInitializers3.ts
@@ -0,0 +1,18 @@
+// @strict: true
+// @noEmit: true
+
+type CanvasDirection = "RIGHT" | "LEFT";
+
+interface GraphActions {
+  setDirection: (direction: CanvasDirection) => void;
+}
+
+export declare function create<T>(config: T): void;
+
+declare function takesDirection(direction: CanvasDirection): void;
+
+create<GraphActions>({
+  setDirection: (direction = "RIGHT") => {
+    takesDirection(direction);
+  },
+});
\ No newline at end of file
diff --git a/tests/cases/compiler/contextuallyTypedParametersWithInitializers4.ts b/tests/cases/compiler/contextuallyTypedParametersWithInitializers4.ts
new file mode 100644
index 0000000000000..a28258acaf416
--- /dev/null
+++ b/tests/cases/compiler/contextuallyTypedParametersWithInitializers4.ts
@@ -0,0 +1,16 @@
+// @strict: true
+// @noEmit: true
+
+declare function test<
+  TContext,
+  TMethods extends Record<string, (ctx: TContext, ...args: (1 | 2)[]) => unknown>,
+>(context: TContext, methods: TMethods): void;
+
+test(
+  {
+    count: 0,
+  },
+  {
+    checkLimit: (ctx, max = 3) => {},
+  },
+);