Type Error with Schema.optionalWith in Effect Typescript Library

Is this a bug with Schema.optionalWith? I wouldn't expect a type error from this

https://effect.website/play/#809ca427d111

import { type Schema, Schema as S } from "effect"

const MySchema: Schema.Schema<MySchemaType> = S.Struct({
  id: S.String,
  fieldWithDefault: S.optionalWith(S.Boolean, { default: () => true })
})

type MySchemaType = Readonly<{
  id: string
  fieldWithDefault: boolean
}>
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