Why do raw types in one place cause generic callsites somewhere else to be treated as raw?

Consider this example:

import java.util.*;

class Foo<T> {
  public int baz(List<String> stringlist) { return 1; }
  public int baz(ArrayList<Object> objectlist) { return 2; }

  public static void main(String[] args) {
    Foo<String> foo = new Foo<String>(); // (A)
    //Foo foo = new Foo();               // (B)

    System.out.println(foo.baz(new ArrayList<String>()));
  }
}

Why does it print 1 in (A), but 2 with (B)?

I know how method resolution works, so no need to explain that to me.

I want to know the deeper motivation behind this "feature". Why is there no erasure warning about it? (There is just one about Foo foo = new Foo().)

Why does method resolution use erased semantics although the generic type is given?