type foo struct { i int }
type bar struct { i int }

func _() {
	var _ foo = <>
}

At <>, "bar{}" is the top candidate. I think gopls sees that bar is convertible to foo so it thinks "bar{}" is a good candidate. The conversion (i.e. "foo(bar{})") is not present in the candidate because the literal candidate code doesn't support converting types. Anyway, gopls shouldn't offer literal candidates that require conversion.

/cc @psanford