diff --git a/packages/language-core/lib/codegen/globalTypes.ts b/packages/language-core/lib/codegen/globalTypes.ts
index 83befdd7fc..2081541203 100644
--- a/packages/language-core/lib/codegen/globalTypes.ts
+++ b/packages/language-core/lib/codegen/globalTypes.ts
@@ -134,7 +134,7 @@ export function generateGlobalTypes(options: VueCompilerOptions) {
 	type __VLS_ResolveDirectives<T> = {
 		[K in keyof T & string as \`v\${Capitalize<K>}\`]: T[K];
 	};
-	type __VLS_PrettifyGlobal<T> = { [K in keyof T as K]: T[K]; } & {};
+	type __VLS_PrettifyGlobal<T> = (T extends any ? { [K in keyof T]: T[K]; } : { [K in keyof T as K]: T[K]; }) & {};
 	type __VLS_WithDefaultsGlobal<P, D> = {
 		[K in keyof P as K extends keyof D ? K : never]-?: P[K];
 	} & {
diff --git a/packages/language-core/lib/codegen/localTypes.ts b/packages/language-core/lib/codegen/localTypes.ts
index 84e65d4aec..8e212cd2c7 100644
--- a/packages/language-core/lib/codegen/localTypes.ts
+++ b/packages/language-core/lib/codegen/localTypes.ts
@@ -17,7 +17,8 @@ type __VLS_WithDefaultsLocal<P, D> = {
 	);
 	const PrettifyLocal = defineHelper(
 		`__VLS_PrettifyLocal`,
-		() => `type __VLS_PrettifyLocal<T> = { [K in keyof T as K]: T[K]; } & {}${endOfLine}`,
+		() =>
+			`type __VLS_PrettifyLocal<T> = (T extends any ? { [K in keyof T]: T[K]; } : { [K in keyof T as K]: T[K]; }) & {}${endOfLine}`,
 	);
 	const WithSlots = defineHelper(
 		`__VLS_WithSlots`,
diff --git a/packages/language-core/lib/codegen/script/scriptSetup.ts b/packages/language-core/lib/codegen/script/scriptSetup.ts
index d0d2826031..4f3fbd87cc 100644
--- a/packages/language-core/lib/codegen/script/scriptSetup.ts
+++ b/packages/language-core/lib/codegen/script/scriptSetup.ts
@@ -2,7 +2,14 @@ import { camelize } from '@vue/shared';
 import type { ScriptSetupRanges } from '../../parsers/scriptSetupRanges';
 import type { Code, Sfc, TextRange } from '../../types';
 import { codeFeatures } from '../codeFeatures';
-import { endOfLine, generatePartiallyEnding, generateSfcBlockSection, identifierRegex, newLine } from '../utils';
+import {
+	createSfcBlockGenerator,
+	endOfLine,
+	generatePartiallyEnding,
+	generateSfcBlockSection,
+	identifierRegex,
+	newLine,
+} from '../utils';
 import { generateCamelized } from '../utils/camelized';
 import { wrapWith } from '../utils/wrapWith';
 import { generateComponent } from './component';
@@ -129,103 +136,99 @@ function* generateSetupFunction(
 	scriptSetupRanges: ScriptSetupRanges,
 	syntax: 'return' | 'export default' | undefined,
 ): Generator<Code> {
-	let setupCodeModifies: [Code[], number, number][] = [];
+	const { replace, generate } = createSfcBlockGenerator(
+		scriptSetup,
+		Math.max(scriptSetupRanges.importSectionEndOffset, scriptSetupRanges.leadingCommentEndOffset),
+		scriptSetup.content.length,
+		codeFeatures.all,
+	);
+
 	if (scriptSetupRanges.defineProps) {
 		const { name, statement, callExp, typeArg } = scriptSetupRanges.defineProps;
-		setupCodeModifies.push(...generateDefineWithType(
-			scriptSetup,
-			statement,
-			scriptSetupRanges.withDefaults?.callExp ?? callExp,
-			typeArg,
-			name,
-			`__VLS_props`,
-			`__VLS_Props`,
-		));
+		for (
+			const replacement of generateDefineWithType(
+				scriptSetup,
+				statement,
+				scriptSetupRanges.withDefaults?.callExp ?? callExp,
+				typeArg,
+				name,
+				`__VLS_props`,
+				`__VLS_Props`,
+			)
+		) {
+			replace(...replacement);
+		}
 	}
 	if (scriptSetupRanges.defineEmits) {
 		const { name, statement, callExp, typeArg } = scriptSetupRanges.defineEmits;
-		setupCodeModifies.push(...generateDefineWithType(
-			scriptSetup,
-			statement,
-			callExp,
-			typeArg,
-			name,
-			`__VLS_emit`,
-			`__VLS_Emit`,
-		));
+		for (
+			const replacement of generateDefineWithType(
+				scriptSetup,
+				statement,
+				callExp,
+				typeArg,
+				name,
+				`__VLS_emit`,
+				`__VLS_Emit`,
+			)
+		) {
+			replace(...replacement);
+		}
 	}
 	if (scriptSetupRanges.defineSlots) {
 		const { name, statement, callExp, typeArg } = scriptSetupRanges.defineSlots;
-		setupCodeModifies.push(...generateDefineWithType(
-			scriptSetup,
-			statement,
-			callExp,
-			typeArg,
-			name,
-			`__VLS_slots`,
-			`__VLS_Slots`,
-		));
+		for (
+			const replacement of generateDefineWithType(
+				scriptSetup,
+				statement,
+				callExp,
+				typeArg,
+				name,
+				`__VLS_slots`,
+				`__VLS_Slots`,
+			)
+		) {
+			replace(...replacement);
+		}
 	}
 	if (scriptSetupRanges.defineExpose) {
 		const { callExp, arg, typeArg } = scriptSetupRanges.defineExpose;
 		if (typeArg) {
-			setupCodeModifies.push([
-				[
-					`let __VLS_exposed!: `,
-					generateSfcBlockSection(scriptSetup, typeArg.start, typeArg.end, codeFeatures.all),
-					endOfLine,
-				],
+			replace(
 				callExp.start,
 				callExp.start,
-			], [
-				[`typeof __VLS_exposed`],
-				typeArg.start,
-				typeArg.end,
-			]);
+				`let __VLS_exposed!: `,
+				generateSfcBlockSection(scriptSetup, typeArg.start, typeArg.end, codeFeatures.all),
+				endOfLine,
+			);
+			replace(typeArg.start, typeArg.end, `typeof __VLS_exposed`);
 		}
 		else if (arg) {
-			setupCodeModifies.push([
-				[
-					`const __VLS_exposed = `,
-					generateSfcBlockSection(scriptSetup, arg.start, arg.end, codeFeatures.all),
-					endOfLine,
-				],
+			replace(
 				callExp.start,
 				callExp.start,
-			], [
-				[`__VLS_exposed`],
-				arg.start,
-				arg.end,
-			]);
+				`const __VLS_exposed = `,
+				generateSfcBlockSection(scriptSetup, arg.start, arg.end, codeFeatures.all),
+				endOfLine,
+			);
+			replace(arg.start, arg.end, `__VLS_exposed`);
 		}
 		else {
-			setupCodeModifies.push([
-				[`const __VLS_exposed = {}${endOfLine}`],
-				callExp.start,
-				callExp.start,
-			]);
+			replace(callExp.start, callExp.start, `const __VLS_exposed = {}${endOfLine}`);
 		}
 	}
 	if (options.vueCompilerOptions.inferTemplateDollarAttrs) {
 		for (const { callExp } of scriptSetupRanges.useAttrs) {
-			setupCodeModifies.push([
-				[`(`],
-				callExp.start,
-				callExp.start,
-			], [
-				[` as typeof __VLS_dollars.$attrs)`],
-				callExp.end,
-				callExp.end,
-			]);
+			replace(callExp.start, callExp.start, `(`);
+			replace(callExp.end, callExp.end, ` as typeof __VLS_dollars.$attrs)`);
 		}
 	}
 	for (const { callExp, exp, arg } of scriptSetupRanges.useCssModule) {
-		setupCodeModifies.push([
-			[`(`],
-			callExp.start,
-			callExp.start,
-		], [
-			arg
+		replace(callExp.start, callExp.start, `(`);
+		replace(
+			callExp.end,
+			callExp.end,
+			...arg
 				? [
 					` as Omit<__VLS_StyleModules, '$style'>[`,
 					generateSfcBlockSection(scriptSetup, arg.start, arg.end, codeFeatures.withoutSemantic),
@@ -242,28 +245,15 @@ function* generateSetupFunction(
 					),
 					`])`,
 				],
-			callExp.end,
-			callExp.end,
-		]);
+		);
 		if (arg) {
-			setupCodeModifies.push([
-				[`__VLS_placeholder`],
-				arg.start,
-				arg.end,
-			]);
+			replace(arg.start, arg.end, `__VLS_placeholder`);
 		}
 	}
 	if (options.vueCompilerOptions.inferTemplateDollarSlots) {
 		for (const { callExp } of scriptSetupRanges.useSlots) {
-			setupCodeModifies.push([
-				[`(`],
-				callExp.start,
-				callExp.start,
-			], [
-				[` as typeof __VLS_dollars.$slots)`],
-				callExp.end,
-				callExp.end,
-			]);
+			replace(callExp.start, callExp.start, `(`);
+			replace(callExp.end, callExp.end, ` as typeof __VLS_dollars.$slots)`);
 		}
 	}
 	const isTs = options.lang !== 'js' && options.lang !== 'jsx';
@@ -276,49 +266,18 @@ function* generateSetupFunction(
 			]
 			: [`unknown`];
 		if (isTs) {
-			setupCodeModifies.push([
-				[
-					`<`,
-					...templateRefType,
-					`>`,
-				],
-				exp.end,
-				exp.end,
-			]);
+			replace(exp.end, exp.end, `<`, ...templateRefType, `>`);
 		}
 		else {
-			setupCodeModifies.push([
-				[`(`],
-				callExp.start,
-				callExp.start,
-			], [
-				[
-					` as __VLS_UseTemplateRef<`,
-					...templateRefType,
-					`>)`,
-				],
-				callExp.end,
-				callExp.end,
-			]);
+			replace(callExp.start, callExp.start, `(`);
+			replace(callExp.end, callExp.end, ` as __VLS_UseTemplateRef<`, ...templateRefType, `>)`);
 		}
 		if (arg) {
-			setupCodeModifies.push([
-				[`__VLS_placeholder`],
-				arg.start,
-				arg.end,
-			]);
+			replace(arg.start, arg.end, `__VLS_placeholder`);
 		}
 	}
-	setupCodeModifies = setupCodeModifies.sort((a, b) => a[1] - b[1]);
-
-	let nextStart = Math.max(scriptSetupRanges.importSectionEndOffset, scriptSetupRanges.leadingCommentEndOffset);
-	for (const [codes, start, end] of setupCodeModifies) {
-		yield generateSfcBlockSection(scriptSetup, nextStart, start, codeFeatures.all);
-		yield* codes;
-		nextStart = end;
-	}
-	yield generateSfcBlockSection(scriptSetup, nextStart, scriptSetup.content.length, codeFeatures.all);
 
+	yield* generate();
 	yield* generatePartiallyEnding(scriptSetup.name, scriptSetup.content.length, '#3632/scriptSetup.vue');
 	yield* generateMacros(options, ctx);
 
@@ -375,67 +334,57 @@ function* generateDefineWithType(
 	name: string | undefined,
 	defaultName: string,
 	typeName: string,
-): Generator<[Code[], number, number]> {
+): Generator<[number, number, ...Code[]]> {
 	if (typeArg) {
 		yield [
-			[
-				`type ${typeName} = `,
-				generateSfcBlockSection(scriptSetup, typeArg.start, typeArg.end, codeFeatures.all),
-				endOfLine,
-			],
 			statement.start,
 			statement.start,
+			`type ${typeName} = `,
+			generateSfcBlockSection(scriptSetup, typeArg.start, typeArg.end, codeFeatures.all),
+			endOfLine,
 		];
-		yield [[typeName], typeArg.start, typeArg.end];
+		yield [typeArg.start, typeArg.end, typeName];
 	}
 	if (!name) {
 		if (statement.start === callExp.start && statement.end === callExp.end) {
-			yield [[`const ${defaultName} = `], callExp.start, callExp.start];
+			yield [callExp.start, callExp.start, `const ${defaultName} = `];
 		}
 		else if (typeArg) {
 			yield [
-				[
-					`const ${defaultName} = `,
-					generateSfcBlockSection(scriptSetup, callExp.start, typeArg.start, codeFeatures.all),
-				],
 				statement.start,
 				typeArg.start,
+				`const ${defaultName} = `,
+				generateSfcBlockSection(scriptSetup, callExp.start, typeArg.start, codeFeatures.all),
 			];
 			yield [
-				[
-					generateSfcBlockSection(scriptSetup, typeArg.end, callExp.end, codeFeatures.all),
-					endOfLine,
-					generateSfcBlockSection(scriptSetup, statement.start, callExp.start, codeFeatures.all),
-					defaultName,
-				],
 				typeArg.end,
 				callExp.end,
+				generateSfcBlockSection(scriptSetup, typeArg.end, callExp.end, codeFeatures.all),
+				endOfLine,
+				generateSfcBlockSection(scriptSetup, statement.start, callExp.start, codeFeatures.all),
+				defaultName,
 			];
 		}
 		else {
 			yield [
-				[
-					`const ${defaultName} = `,
-					generateSfcBlockSection(scriptSetup, callExp.start, callExp.end, codeFeatures.all),
-					endOfLine,
-					generateSfcBlockSection(scriptSetup, statement.start, callExp.start, codeFeatures.all),
-					defaultName,
-				],
 				statement.start,
 				callExp.end,
+				`const ${defaultName} = `,
+				generateSfcBlockSection(scriptSetup, callExp.start, callExp.end, codeFeatures.all),
+				endOfLine,
+				generateSfcBlockSection(scriptSetup, statement.start, callExp.start, codeFeatures.all),
+				defaultName,
 			];
 		}
 	}
 	else if (!identifierRegex.test(name)) {
-		yield [[`const ${defaultName} = `], statement.start, callExp.start];
+		yield [statement.start, callExp.start, `const ${defaultName} = `];
 		yield [
-			[
-				endOfLine,
-				generateSfcBlockSection(scriptSetup, statement.start, callExp.start, codeFeatures.all),
-				defaultName,
-			],
 			statement.end,
 			statement.end,
+			endOfLine,
+			generateSfcBlockSection(scriptSetup, statement.start, callExp.start, codeFeatures.all),
+			defaultName,
 		];
 	}
 }
diff --git a/packages/language-core/lib/codegen/script/template.ts b/packages/language-core/lib/codegen/script/template.ts
index f0e2f937c7..d6eafef9e0 100644
--- a/packages/language-core/lib/codegen/script/template.ts
+++ b/packages/language-core/lib/codegen/script/template.ts
@@ -7,7 +7,7 @@ import { generateStyleScopedClasses } from '../style/scopedClasses';
 import { createTemplateCodegenContext, type TemplateCodegenContext } from '../template/context';
 import { generateInterpolation } from '../template/interpolation';
 import { generateStyleScopedClassReferences } from '../template/styleScopedClasses';
-import { endOfLine, generateSfcBlockSection, newLine } from '../utils';
+import { createSfcBlockGenerator, endOfLine, generateSfcBlockSection, newLine } from '../utils';
 import { generateSpreadMerge } from '../utils/merge';
 import type { ScriptCodegenContext } from './context';
 import type { ScriptCodegenOptions } from './index';
@@ -27,9 +27,20 @@ export function* generateTemplate(
 
 function* generateSelf(options: ScriptCodegenOptions): Generator<Code> {
 	if (options.sfc.script && options.scriptRanges?.componentOptions) {
+		const { args, expose } = options.scriptRanges.componentOptions;
+		const { replace, generate } = createSfcBlockGenerator(
+			options.sfc.script,
+			args.start,
+			args.end,
+			codeFeatures.navigation,
+		);
+
+		if (expose) {
+			replace(expose.start, expose.end, `undefined`);
+		}
+
 		yield `const __VLS_self = (await import('${options.vueCompilerOptions.lib}')).defineComponent(`;
-		const { args } = options.scriptRanges.componentOptions;
-		yield generateSfcBlockSection(options.sfc.script, args.start, args.end, codeFeatures.all);
+		yield* generate();
 		yield `)${endOfLine}`;
 	}
 	else if (options.sfc.script && options.scriptRanges?.exportDefault) {
diff --git a/packages/language-core/lib/codegen/utils/index.ts b/packages/language-core/lib/codegen/utils/index.ts
index 7b09218b5c..7c83580495 100644
--- a/packages/language-core/lib/codegen/utils/index.ts
+++ b/packages/language-core/lib/codegen/utils/index.ts
@@ -35,6 +35,30 @@ export function createTsAst(
 	return ast;
 }
 
+export function createSfcBlockGenerator(
+	block: SfcBlock,
+	start: number,
+	end: number,
+	features: VueCodeInformation,
+) {
+	const replacement: [number, number, ...Code[]][] = [];
+
+	return {
+		replace(...args: typeof replacement[number]) {
+			replacement.push(args);
+		},
+		*generate() {
+			let offset = start;
+			for (const [start, end, ...codes] of replacement.sort((a, b) => a[0] - b[0])) {
+				yield generateSfcBlockSection(block, offset, start, features);
+				yield* codes;
+				offset = end;
+			}
+			yield generateSfcBlockSection(block, offset, end, features);
+		},
+	};
+}
+
 export function generateSfcBlockSection(
 	block: SfcBlock,
 	start: number,
diff --git a/packages/language-core/lib/parsers/scriptRanges.ts b/packages/language-core/lib/parsers/scriptRanges.ts
index 72788c2551..cdd767c198 100644
--- a/packages/language-core/lib/parsers/scriptRanges.ts
+++ b/packages/language-core/lib/parsers/scriptRanges.ts
@@ -21,6 +21,7 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 			directives: TextRange | undefined;
 			name: TextRange | undefined;
 			inheritAttrs: string | undefined;
+			expose: TextRange | undefined;
 		}
 		| undefined;
 
@@ -57,6 +58,7 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 				let directivesOptionNode: ts.ObjectLiteralExpression | undefined;
 				let nameOptionNode: ts.Expression | undefined;
 				let inheritAttrsOption: string | undefined;
+				let exposeOptionNode: ts.Expression | undefined;
 				ts.forEachChild(obj, node => {
 					if (ts.isPropertyAssignment(node) && ts.isIdentifier(node.name)) {
 						const name = _getNodeText(node.name);
@@ -72,6 +74,9 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 						else if (name === 'inheritAttrs') {
 							inheritAttrsOption = _getNodeText(node.initializer);
 						}
+						else if (name === 'expose') {
+							exposeOptionNode = node.initializer;
+						}
 					}
 				});
 				componentOptions = {
@@ -83,6 +88,7 @@ export function parseScriptRanges(ts: typeof import('typescript'), ast: ts.Sourc
 					directives: directivesOptionNode ? _getStartEnd(directivesOptionNode) : undefined,
 					name: nameOptionNode ? _getStartEnd(nameOptionNode) : undefined,
 					inheritAttrs: inheritAttrsOption,
+					expose: exposeOptionNode ? _getStartEnd(exposeOptionNode) : undefined,
 				};
 			}
 		}
diff --git a/packages/tsc/tests/__snapshots__/dts.spec.ts.snap b/packages/tsc/tests/__snapshots__/dts.spec.ts.snap
index f925cc47e0..ca8fe89438 100644
--- a/packages/tsc/tests/__snapshots__/dts.spec.ts.snap
+++ b/packages/tsc/tests/__snapshots__/dts.spec.ts.snap
@@ -81,9 +81,11 @@ exports[`vue-tsc-dts > Input: generic/component.vue, Output: generic/component.v
 };
 declare const _default: typeof __VLS_export;
 export default _default;
-type __VLS_PrettifyLocal<T> = {
+type __VLS_PrettifyLocal<T> = (T extends any ? {
+    [K in keyof T]: T[K];
+} : {
     [K in keyof T as K]: T[K];
-} & {};
+}) & {};
 "
 `;
 
@@ -114,9 +116,11 @@ exports[`vue-tsc-dts > Input: generic/custom-extension-component.cext, Output: g
 };
 declare const _default: typeof __VLS_export;
 export default _default;
-type __VLS_PrettifyLocal<T> = {
+type __VLS_PrettifyLocal<T> = (T extends any ? {
+    [K in keyof T]: T[K];
+} : {
     [K in keyof T as K]: T[K];
-} & {};
+}) & {};
 "
 `;
 
diff --git a/test-workspace/tsc/passedFixtures/vue3/#5069/main.vue b/test-workspace/tsc/passedFixtures/vue3/#5069/main.vue
new file mode 100644
index 0000000000..5877f3d8f3
--- /dev/null
+++ b/test-workspace/tsc/passedFixtures/vue3/#5069/main.vue
@@ -0,0 +1,42 @@
+<script lang="ts">
+import { defineComponent, ref } from 'vue';
+
+export default defineComponent({
+	setup() {
+		const setup1 = ref('setup1');
+		const setup2 = ref('setup2');
+		return { setup1, setup2 };
+	},
+	data() {
+		return {
+			data1: 1,
+		};
+	},
+	props: {
+		props1: {
+			type: String,
+		},
+	},
+	computed: {
+		computed1() {
+			return this.setup1.toUpperCase();
+		},
+	},
+	methods: {
+		methods1() {
+			return `methods1`;
+		},
+	},
+	expose: ['setup1'],
+});
+</script>
+
+<template>
+	<div @click="methods1()">
+		{{ setup1 }}
+		{{ setup2 }}
+		{{ data1 }}
+		{{ props1 }}
+		{{ computed1 }}
+	</div>
+</template>
diff --git a/test-workspace/tsc/passedFixtures/vue3/#5592/child.vue b/test-workspace/tsc/passedFixtures/vue3/#5592/child.vue
new file mode 100644
index 0000000000..748369e89e
--- /dev/null
+++ b/test-workspace/tsc/passedFixtures/vue3/#5592/child.vue
@@ -0,0 +1,8 @@
+<script setup lang="ts" generic="T">
+defineOptions({ inheritAttrs: false });
+defineProps</* @vue-ignore */ T>();
+</script>
+
+<template>
+	<slot v-bind="$attrs as T" />
+</template>
diff --git a/test-workspace/tsc/passedFixtures/vue3/#5592/main.vue b/test-workspace/tsc/passedFixtures/vue3/#5592/main.vue
new file mode 100644
index 0000000000..4e7c74e34c
--- /dev/null
+++ b/test-workspace/tsc/passedFixtures/vue3/#5592/main.vue
@@ -0,0 +1,9 @@
+<script setup lang="ts">
+import child from './child.vue';
+</script>
+
+<template>
+  <child #default="{ foo, bar }" :foo="42" bar="baz">
+    {{ foo }} {{ bar }}
+  </child>
+</template>