[ty] Literal promotion refactor (#20646)
## Summary
Not sure if this was the original intention, but it looks to me like the
previous `Type::literal_promotion_type` was more of an implementation
detail for the actual operation of promoting all literals in a
possibly-nested position of a type.
This is not a pure refactor, as I'm technically changing the behavior
for that protocols diagnostic message suggestion.
## Test Plan
New Markdown test
