>This means, that a function will return an error enum, containing error variants that the function cannot even produce. If you match on this error enum, you will have to manually distinguish which of those variants are not applicable in your current scope
You have to anyway.
The return type isn't to define what error variants the function can return. We already have something for that, it's called the function body. If we only wanted to specify the variants that could be returned, we wouldn't need to specify anything at all: the compiler could work it out.
No. The point of the function signature is the interface for the calling function. If that function sees an error type with foo and bar and baz variants, it should have code paths for all of them.
It's not right to say that the function cannot produce them, only that it doesn't currently produce them.