TS2345 when generic function calls itself. #41714

/**
 * function illustrates typescript compile error. Generic function recursively
 * calls itself.  Get error TS2345 on statement where function calls itself. 
 * This code compiles without error using typescript version 4.0.5 or lower.
 * The compile fails at typescript version 4.1.2
 * @param arr1 
 * @param arr2 
 */
export function genericArrayProblem<T>(arr1: T[], arr2: T[]): boolean 
{
  for( let ix = 0 ; ix < arr1.length ; ++ix )
  {
    if ( ix < arr2.length )
    {
      const item1 = arr1[ix];
      const item2 = arr2[ix];
      
      if (Array.isArray(item1) && Array.isArray(item2))
      {
        const res = genericArrayProblem(item1, item2);
      }
    }
  }

  return true ;
}

error TS2345: Argument of type 'T & (T extends readonly any[] ? unknown extends T 
? never : readonly any[] : any[])' is not assignable to parameter of type 'any[]'.

     const res = genericArrayProblem(item1, item2);