Local function that shares the same name with a parameter of its parent function but differs by type signatures shadows the parameter instead of overloading it

[WowbaggersLiquidLunch]

In this contrived example:

func scale(
    of integer: Int,
    by fraction: Double,
    using operation: (Double, Double) -> Double
) -> Int {
    return operation(integer, fraction)
    func operation(_ integer: Int, _ float: Double) -> Int {
        let integerInDouble = Double(integer)
        let resultInDouble = operation(integerInDouble, float)
        return Int(resultInDouble)
    }
}

I expect the local function operation(_:_:) to overload the parameter operation(_:_:), because they're of different types ((Int, Double) -> Double and (Double, Double) -> Double). But what actually happens is that the local function shadows the parameter, and results in this error:

9:34: error: cannot convert value of type 'Double' to expected argument type 'Int'
               let resultInDouble = operation(integerInDouble, float)

Environments:

• Xcode 14.0 beta 2 (14A5229c) default toolchain on macOS 12.4 (21F79)
• x86-64 swiftc nightly on godbolt: https://godbolt.org/z/PxWEzv7dh