Table Valued Parameters prevents WHERE optimization?

Please take a look.

ALTER function [dbo].[reporting_days_OnIgnore_All]( @ignoreStatus list_varchar_tbltype READONLY )
        RETURNS Table
As
return (  

WITH OnIgnores as (
Select
        ch.CaseId ,ch.CreatedDate ,ch.OldValue ,ch.NewValue     
From 
        CaseHistory ch  
Where exists (Select * from @ignoreStatus where s = ch.NewValue)
        and exists (select *  From dbo.[CASE] c Where c.Id = ch.CaseId and c.cs_OpenSince__c<= ch.CreatedDate )
)
,OffIgnores as (
Select
        ch.CaseId ,ch.CreatedDate ,ch.OldValue ,ch.NewValue     
From 
        CaseHistory ch  
Where exists (Select * from @ignoreStatus where s = ch.OldValue )
        and exists (select *  From dbo.[CASE] c Where c.Id = ch.CaseId and c.cs_OpenSince__c<= ch.CreatedDate )
)
        
Select
        Ignores.CaseID CaseID
        ,ISNULL(SUM( dbo.getWeekdayDiff( Ignores.fromdate, Ignores.todate ) ), 0) daysOnIgnore
From
        (
        
                select 
                        c.Id CaseID
                        ,dbo.GetLocalDateTimeDST(isnull(h.CreatedDate, GETDATE()), u.TimeZoneSIDKey ) fromdate
                        ,dbo.GetLocalDateTimeDST(
                        isNULL( ( select MIN(h2.createddate) from OffIgnores h2 where h2.CreatedDate > h.CreatedDate AND h2.caseid = h.caseid ), GETDATE() )
                        , u.TimeZoneSIDKey ) todate
                from
                        [CASE] c
                        Inner Join [user] u (nolock) on c.ownerid = u.Id
                        LEFT OUTER JOIN OnIgnores h ON h.CaseId = c.Id
                
        -- add in extra row for cases originally opened as OnIgnore     
        UNION ALL 
        select 
                c.Id CaseID
                ,dbo.GetLocalDateTimeDST(c.CreatedDate, u.TimeZoneSIDKey ) fromdate
                ,dbo.GetLocalDateTimeDST(h.CreatedDate, u.TimeZoneSIDKey ) todate
        from
                dbo.[CASE] c
                Inner Join [user] u (nolock) on c.ownerid = u.Id
                OUTER APPLY ( 
                        SELECT  TOP 1 *
                        FROM (
                                select * from OffIgnores ofh where c.Id = ofh.CaseId
                        UNION ALL
                                select * from OnIgnores onh where c.Id = onh.CaseId
                        ) oh
                        where exists (Select * from @ignoreStatus where s = oh.OldValue)
                        ORDER BY
                oh.CreatedDate Asc 
                ) h
                
        ) Ignores
Group By Ignores.CaseID  
);