diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index cf16285cdb1a8..3981ebc1255ff 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -35136,7 +35136,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         // use the resolvingSignature singleton to indicate that we deferred processing. This result will be
         // propagated out and eventually turned into silentNeverType (a type that is assignable to anything and
         // from which we never make inferences).
-        if (checkMode & CheckMode.SkipGenericFunctions && !node.typeArguments && callSignatures.some(isGenericFunctionReturningFunctionOrConstructor)) {
+        if (checkMode & CheckMode.SkipGenericFunctions && !node.typeArguments && callSignatures.some(isGenericFunctionReturningFunction)) {
             skippedGenericFunction(node, checkMode);
             return resolvingSignature;
         }
@@ -35149,12 +35149,8 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         return resolveCall(node, callSignatures, candidatesOutArray, checkMode, callChainFlags);
     }
 
-    function isGenericFunctionReturningFunctionOrConstructor(signature: Signature) {
-        if (!signature.typeParameters) {
-            return false;
-        }
-        const returnType = getReturnTypeOfSignature(signature);
-        return isFunctionType(returnType) || isConstructorType(returnType);
+    function isGenericFunctionReturningFunction(signature: Signature) {
+        return !!(signature.typeParameters && isFunctionType(getReturnTypeOfSignature(signature)));
     }
 
     /**
diff --git a/tests/baselines/reference/inferenceGenericNestedCallReturningConstructor.symbols b/tests/baselines/reference/inferenceGenericNestedCallReturningConstructor.symbols
deleted file mode 100644
index 03e0bcb9f168b..0000000000000
--- a/tests/baselines/reference/inferenceGenericNestedCallReturningConstructor.symbols
+++ /dev/null
@@ -1,72 +0,0 @@
-//// [tests/cases/compiler/inferenceGenericNestedCallReturningConstructor.ts] ////
-
-=== inferenceGenericNestedCallReturningConstructor.ts ===
-interface Action<TContext> {
->Action : Symbol(Action, Decl(inferenceGenericNestedCallReturningConstructor.ts, 0, 0))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 0, 17))
-
-  new (ctx: TContext): void;
->ctx : Symbol(ctx, Decl(inferenceGenericNestedCallReturningConstructor.ts, 1, 7))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 0, 17))
-}
-
-declare class AssignAction<TContext> {
->AssignAction : Symbol(AssignAction, Decl(inferenceGenericNestedCallReturningConstructor.ts, 2, 1))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 4, 27))
-
-  constructor(ctx: TContext);
->ctx : Symbol(ctx, Decl(inferenceGenericNestedCallReturningConstructor.ts, 5, 14))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 4, 27))
-}
-
-declare function assign<TContext>(
->assign : Symbol(assign, Decl(inferenceGenericNestedCallReturningConstructor.ts, 6, 1))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 8, 24))
-
-  assigner: (ctx: TContext) => void
->assigner : Symbol(assigner, Decl(inferenceGenericNestedCallReturningConstructor.ts, 8, 34))
->ctx : Symbol(ctx, Decl(inferenceGenericNestedCallReturningConstructor.ts, 9, 13))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 8, 24))
-
-): {
-  new (ctx: TContext): AssignAction<TContext>;
->ctx : Symbol(ctx, Decl(inferenceGenericNestedCallReturningConstructor.ts, 11, 7))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 8, 24))
->AssignAction : Symbol(AssignAction, Decl(inferenceGenericNestedCallReturningConstructor.ts, 2, 1))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 8, 24))
-}
-
-declare function createMachine<TContext>(config: {
->createMachine : Symbol(createMachine, Decl(inferenceGenericNestedCallReturningConstructor.ts, 12, 1))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 14, 31))
->config : Symbol(config, Decl(inferenceGenericNestedCallReturningConstructor.ts, 14, 41))
-
-  context: TContext;
->context : Symbol(context, Decl(inferenceGenericNestedCallReturningConstructor.ts, 14, 50))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 14, 31))
-
-  entry: Action<TContext>;
->entry : Symbol(entry, Decl(inferenceGenericNestedCallReturningConstructor.ts, 15, 20))
->Action : Symbol(Action, Decl(inferenceGenericNestedCallReturningConstructor.ts, 0, 0))
->TContext : Symbol(TContext, Decl(inferenceGenericNestedCallReturningConstructor.ts, 14, 31))
-
-}): void;
-
-createMachine({
->createMachine : Symbol(createMachine, Decl(inferenceGenericNestedCallReturningConstructor.ts, 12, 1))
-
-  context: { count: 0 },
->context : Symbol(context, Decl(inferenceGenericNestedCallReturningConstructor.ts, 19, 15))
->count : Symbol(count, Decl(inferenceGenericNestedCallReturningConstructor.ts, 20, 12))
-
-  entry: assign((ctx) => {
->entry : Symbol(entry, Decl(inferenceGenericNestedCallReturningConstructor.ts, 20, 24))
->assign : Symbol(assign, Decl(inferenceGenericNestedCallReturningConstructor.ts, 6, 1))
->ctx : Symbol(ctx, Decl(inferenceGenericNestedCallReturningConstructor.ts, 21, 17))
-
-    ctx // { count: number }
->ctx : Symbol(ctx, Decl(inferenceGenericNestedCallReturningConstructor.ts, 21, 17))
-
-  }),
-});
-
diff --git a/tests/baselines/reference/inferenceGenericNestedCallReturningConstructor.types b/tests/baselines/reference/inferenceGenericNestedCallReturningConstructor.types
deleted file mode 100644
index ce6d09b4d3281..0000000000000
--- a/tests/baselines/reference/inferenceGenericNestedCallReturningConstructor.types
+++ /dev/null
@@ -1,63 +0,0 @@
-//// [tests/cases/compiler/inferenceGenericNestedCallReturningConstructor.ts] ////
-
-=== inferenceGenericNestedCallReturningConstructor.ts ===
-interface Action<TContext> {
-  new (ctx: TContext): void;
->ctx : TContext
-}
-
-declare class AssignAction<TContext> {
->AssignAction : AssignAction<TContext>
-
-  constructor(ctx: TContext);
->ctx : TContext
-}
-
-declare function assign<TContext>(
->assign : <TContext>(assigner: (ctx: TContext) => void) => new (ctx: TContext) => AssignAction<TContext>
-
-  assigner: (ctx: TContext) => void
->assigner : (ctx: TContext) => void
->ctx : TContext
-
-): {
-  new (ctx: TContext): AssignAction<TContext>;
->ctx : TContext
-}
-
-declare function createMachine<TContext>(config: {
->createMachine : <TContext>(config: {    context: TContext;    entry: Action<TContext>;}) => void
->config : { context: TContext; entry: Action<TContext>; }
-
-  context: TContext;
->context : TContext
-
-  entry: Action<TContext>;
->entry : Action<TContext>
-
-}): void;
-
-createMachine({
->createMachine({  context: { count: 0 },  entry: assign((ctx) => {    ctx // { count: number }  }),}) : void
->createMachine : <TContext>(config: { context: TContext; entry: Action<TContext>; }) => void
->{  context: { count: 0 },  entry: assign((ctx) => {    ctx // { count: number }  }),} : { context: { count: number; }; entry: new (ctx: { count: number; }) => AssignAction<{ count: number; }>; }
-
-  context: { count: 0 },
->context : { count: number; }
->{ count: 0 } : { count: number; }
->count : number
->0 : 0
-
-  entry: assign((ctx) => {
->entry : new (ctx: { count: number; }) => AssignAction<{ count: number; }>
->assign((ctx) => {    ctx // { count: number }  }) : new (ctx: { count: number; }) => AssignAction<{ count: number; }>
->assign : <TContext>(assigner: (ctx: TContext) => void) => new (ctx: TContext) => AssignAction<TContext>
->(ctx) => {    ctx // { count: number }  } : (ctx: { count: number; }) => void
->ctx : { count: number; }
-
-    ctx // { count: number }
->ctx : { count: number; }
-
-  }),
-});
-
diff --git a/tests/cases/compiler/inferenceGenericNestedCallReturningConstructor.ts b/tests/cases/compiler/inferenceGenericNestedCallReturningConstructor.ts
deleted file mode 100644
index 8c1ea32096284..0000000000000
--- a/tests/cases/compiler/inferenceGenericNestedCallReturningConstructor.ts
+++ /dev/null
@@ -1,28 +0,0 @@
-// @strict: true
-// @noEmit: true
-
-interface Action<TContext> {
-  new (ctx: TContext): void;
-}
-
-declare class AssignAction<TContext> {
-  constructor(ctx: TContext);
-}
-
-declare function assign<TContext>(
-  assigner: (ctx: TContext) => void
-): {
-  new (ctx: TContext): AssignAction<TContext>;
-}
-
-declare function createMachine<TContext>(config: {
-  context: TContext;
-  entry: Action<TContext>;
-}): void;
-
-createMachine({
-  context: { count: 0 },
-  entry: assign((ctx) => {
-    ctx // { count: number }
-  }),
-});