diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 9f77641faf5cc..2f943279c999f 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -20358,7 +20358,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                 isSimpleTypeRelatedTo(source, target, relation, reportErrors ? reportError : undefined)) return Ternary.True;
 
             if (source.flags & TypeFlags.StructuredOrInstantiable || target.flags & TypeFlags.StructuredOrInstantiable) {
-                const isPerformingExcessPropertyChecks = !(intersectionState & IntersectionState.Target) && (isObjectLiteralType(source) && getObjectFlags(source) & ObjectFlags.FreshLiteral);
+                const isPerformingExcessPropertyChecks = !isFromInferenceBlockedSource(source) && !(intersectionState & IntersectionState.Target) && (isObjectLiteralType(source) && getObjectFlags(source) & ObjectFlags.FreshLiteral);
                 if (isPerformingExcessPropertyChecks) {
                     if (hasExcessProperties(source as FreshObjectLiteralType, target, reportErrors)) {
                         if (reportErrors) {
diff --git a/tests/cases/fourslash/noErrorsAfterCompletionsRequestWithinGenericFunction1.ts b/tests/cases/fourslash/noErrorsAfterCompletionsRequestWithinGenericFunction1.ts
new file mode 100644
index 0000000000000..0ef19b43fcbd4
--- /dev/null
+++ b/tests/cases/fourslash/noErrorsAfterCompletionsRequestWithinGenericFunction1.ts
@@ -0,0 +1,9 @@
+///<reference path="fourslash.ts"/>
+// @strict: true
+////
+//// declare function func<T extends { foo: 1 }>(arg: T): void;
+//// func({ foo: 1, bar/*1*/: 1 });
+
+goTo.marker("1");
+verify.completions({ exact: undefined });
+verify.noErrors();
diff --git a/tests/cases/fourslash/noErrorsAfterCompletionsRequestWithinGenericFunction2.ts b/tests/cases/fourslash/noErrorsAfterCompletionsRequestWithinGenericFunction2.ts
new file mode 100644
index 0000000000000..6069ac397fdb7
--- /dev/null
+++ b/tests/cases/fourslash/noErrorsAfterCompletionsRequestWithinGenericFunction2.ts
@@ -0,0 +1,12 @@
+///<reference path="fourslash.ts"/>
+// @strict: true
+////
+//// // repro from #50818#issuecomment-1278324638
+////
+//// declare function func<T extends { foo: 1 }>(arg: T): void;
+//// func({ foo: 1, bar/*1*/: 1 });
+
+goTo.marker("1");
+edit.insert("2");
+verify.completions({ exact: undefined });
+verify.noErrors();