Issue with Restricting Parameters to `Schema.TaggedClass`

I'm trying to create an utility that should receive parameters restricted to Schema.TaggedClass only.

I successfully did made it work using Schema.TaggedRequest, but this would not be correct as I have no success nor failure.

I'm struggling to understand the reason why the behavior with Schema.TaggedClass is different. I see they're implemented differently, but cannot find the key difference here.

https://effect.website/play/#52f3407560cd
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