Solution

RxJS 5.4.2 should now work perfectly with TypeScript 2.4.1. Simply upgrade to 5.4.2+ if possible.

npm install --save rxjs@^5.4.2

Then try restarting your editor and/or recompile if you don't see an immediate change.

If not, the below solution should work.

Why it's happening

TypeScript 2.4 has a strictness change, and Subject<T> isn't lifting to the correct Observable. The signature really should have been

<R>(operator: Operator<T, R>) => Observable<R>

This will be fixed in RxJS 6.

Alternative Solution

Newer versions of RxJS will have this fixed, but as a temporary workaround, you can use the noStrictGenericChecks compiler option.

In tsconfig.json, put it in "compilerOptions" and set it to true.

{    "compilerOptions": {        "noStrictGenericChecks": true    }}

On the command line it's --noStrictGenericChecks.

Today, faced this error and solved this pratically with the below three steps. So sharing the same with the hope, it will help others.

Step 1: In the package.json file change the entry as "rxjs": "5.4.2",

Step 2: Delete the node_modules folder from the project,which is present in the root directory

Step 3 : Now ,Right click the package.json file and click restore like as shown below:

Note : It will again create node_module folder with the new files, Now build the solution, hopefully you should not get any build error related to above problem.

Add

"noStrictGenericChecks": true

in tsconfig.json file