Variables are incorrectly marked as shadowed

Tell us about your environment

• ESLint Version: v7.8.1

What parser (default, @babel/eslint-parser, @typescript-eslint/parser, etc.) are you using?

@typescript-eslint/parser

Please show your full configuration:

Configuration

module.exports = {
  parser: "@typescript-eslint/parser",
  plugins: ["@typescript-eslint", "prettier"],
  extends: [
    "eslint:recommended",
    "plugin:@typescript-eslint/recommended",
    "prettier",
    "prettier/@typescript-eslint",
    "prettier/standard"
  ],
  env: {
    browser: true,
    node: true
  },
  parserOptions: {
    ecmaVersion: 2018,
    sourceType: "module"
  },
  rules: {
    "@typescript-eslint/explicit-function-return-type": "off",
    "@typescript-eslint/no-explicit-any": "off",
    "@typescript-eslint/prefer-for-of": "error",
    "@typescript-eslint/no-require-imports": "error",
    "@typescript-eslint/no-parameter-properties": "off",
    "no-unused-vars": "off",
    "@typescript-eslint/no-unused-vars": [
      "error",
      {
        vars: "all",
        args: "none",
        ignoreRestSiblings: true
      }
    ],
    "@typescript-eslint/no-object-literal-type-assertion": "off",
    "@typescript-eslint/no-namespace": "off",
    "@typescript-eslint/no-non-null-assertion": "off",
    "max-len": ["error", { code: 120, tabWidth: 4 }],
    "linebreak-style": ["error", "unix"],
    "no-alert": "error",
    "prefer-const": "error",
    "no-return-assign": "error",
    "no-useless-call": "error",
    "no-shadow": "error",
    "no-useless-concat": "error",
    "no-undef": "off",
    "no-prototype-builtins": "off",
    "prettier/prettier": "error"
  }
};

What did you do? Please include the actual source code causing the issue, as well as the command that you used to run ESLint.

export function foo(bar: number, baz: (bar: number) => void) {}

What did you expect to happen?

no error

What actually happened? Please include the actual, raw output from ESLint.

'bar' is already declared in the upper scope.eslintno-shadow

Are you willing to submit a pull request to fix this bug?

no

[domoritz]

In https://github.com/typescript-eslint/typescript-eslint/issues/2469

[domoritz]

Closing since the issue is tracked in https://github.com/typescript-eslint/typescript-eslint/issues/2447 already.