Java bug

Bug.java

import java.util.function.BiFunction;

public class Bug {
  sealed interface Term {
    record Lit() implements Term {}
    record Lam(String x, Term a) implements Term {}
  }

  public static <X, T> void call(BiFunction<X, T, T> op, X x, T t) {
    op.apply(x, t);
  }

  public static void main(String[] args) {
    // this code works
    call(Term.Lam::new, "x", (Term) new Term.Lit());

    // this does not
    call(Term.Lam::new, "x", new Term.Lit());
    // java.lang.invoke.LambdaConversionException: Type mismatch for lambda argument 1: 
    // class java.lang.Record is not convertible to interface Term
  }
}