Great! Can you add the tests from your original issue to our src/unittests folder? I'd say it should probably be in transform.ts, but maybe it should be in printer.ts depending on the answer to #25223 (comment)

I added a new file src/testRunner/unittests/factory.ts as I will probably add more tests for factory functions while I fix the remaining issues.
Note that I used createArrowFunction for testing to avoid conflicts with #25348

@rbuckton can you please review and merge

Thanks!