My general understanding has been that since Annotated exists primarily to allow interoperability between typing and non-typing uses of annotation space, and that this is quite clear in the PEP, most cases where this is not allowed (_especially_ at the top level of the annotation, as in this case) are either a bug or unintentional. We fixed Annotated wrapping Final and ClassVar a couple weeks ago for arguments sorta along these lines after discussion on typing-sig, where the concern of what constitutes a type to wrap was specifically addressed: https://bugs.python.org/issue46491

But, I am not opposed to discussing this case too, or discussing the issue more broadly. Is typing-sig the appropriate place for me to make a thread, or do we wait for comments here? Even if we decide this particular issue is okay to fix, I think you bring up a good point about documenting our decision clearly once and for all so I agree we should do this.