You don't need a Generic for your getName function and can use a type annotation of Foo for the input parameter obj, i.e.:
const getName = (obj: Foo = foo): string => {
return obj.name;
};
This is because in Typescript every complex type (e.g. objects and arrays) is covariant in its members.
In other words: Since TypeScript knows that Foo here has less required fields and therefore Bar is a subtype of Foo any element of type Bar will be accepted by the getName function. That is, you can safely use a Bar anywhere a Foo is required. (As noted by @DDomen in the comment, function parameter types behave differently)
Let me explain covariance:
Although you assign the type Foo to obj it will also work for getName(bar); because Bar extends Foo (and thereby Bar is a subtype of Foo).
This is allowed because of the way the Typescript engineers set up the type system. They decided that members of objects (i.e. complex types like shapes and arrays) should be allowed to receive its defined type and anything which is a subtype of that type.
In type theory this behavior can be described as shapes being covariant in its members.
Other type systems don't allow such flexibility, i.e. to use a subtype in such a situation. Such type systems would then by called invariant on members of a shape because they'd require exactly the type Foo and would not allow for this flexibility which TypeScript allows.
Also note that Bar does not have to explicitly extend Foo because TypeScript is structurally typed. TypeScript compares the structure of two objects to see whether one is the sub- or supertype of the other. So instead of interface Bar extends Foo you could also just define Bar as:
interface Bar {
name: string;
displayName: string;
}
and getName will still be properly typed with its parameter obj as Foo.
When to use generics?
You don't need a generic because you don't want to relate different parts of your function to each other. A valid use of a generic may be if you want to relate your input parameter to your output parameter.
See this TS Playground of your code.
See also this related issue concerning the error you're getting, i.e.
Type 'Foo' is not assignable to type 'T'.
'Foo' is assignable to the constraint of type 'T', but 'T' could be instantiated with a different subtype of constraint 'Foo'.(2322)
<: T
– DDomen Nov 21 '21 at 17:52` (`Bar <: Foo` then `Function <: Function`, `<:` means subtype)