Nested typings unions breaks

[carmon]

Stack trace:

TS2345: Argument of type '(({ 'error?': string; type: string; } | { image: string; type: string; })[][] | { status: string; type: string; })[][]' is not assignable to parameter of type 'Type'.
  Type '(({ 'error?': string; type: string; } | { image: string; type: string; })[][] | { status: string; type: string; })[][]' is not assignable to type 'ArrayType'.
    Type '(({ 'error?': string; type: string; } | { image: string; type: string; })[][] | { status: string; type: string; })[]' is not assignable to type 'ScalarType'.
      Type '(({ 'error?': string; type: string; } | { image: string; type: string; })[][] | { status: string; type: string; })[]' is not assignable to type 'ObjectType'.
        Index signature is missing in type '(({ 'error?': string; type: string; } | { image: string; type: string; })[][] | { status: string; type: string; })[]'.

Check error in this repo: https://github.com/carmon/boiler-ts

Note the exported:

export type OneTwoThreeWorkingEvent = Event1 | Event2 | Event3;
export type OneTwoThreeNotWorkingEvent = OneTwoEvent | Event3;

First type works, second breaks schema.ts typing.