Intellisense suggests invalid property values within union objects

[Xenomer]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.76.0
• OS Version: Windows 11 22H2 (22621.1265)

Steps to Reproduce:

1. Using the following object union type:

type TestType = {
  key1: 'a',
  key2: '1',
} | {
  key1: 'a',
  key2: '2',
} | {
  key1: 'b',
  key2: '3',
}

2. Even though key2: '1' | '2' when key1 is 'a', VSCode suggest 1, 2 and 3 as b values:
   
   The underlying type checker even knows the correct values for key2, and throws a problem if theyre used: (note the key2: "1" | "2" part)
   

This causes bigger usability problems when used with larger unions and objects where VSCode spills the suggestions with lots of incorrect ones.