Magento 2 – Injecting a Virtual Type Results in Array Instead of Object

I'm having some trouble with virtual types.
I've done some research and this is what I have.

0: A class which takes a string argument

1: A virtual type based on above class with a constant value for above argument.

2: A concrete class in which I'm injecting above virtual type.

Now, from what I understand I imagine that an object should be injected. instead I get an array.
Any help would be highly appreciated. I'm sharing the code as well.

The class that sits at the base of the virtual type

namespace Company\Extension\Model\Product\Attribute\Source;

class Test
{
    /**
     * @var
     */
    protected $string;

    public function __construct($test)
    {
        $this->string = $test;
    }

    public function test()
    {
        return $this->string;
    }
}

The di.xml

<?xml version="1.0"?>
<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:framework:ObjectManager/etc/config.xsd">

    <virtualType name="VirtualTypeName" type="\Company\Extension\Model\Product\Attribute\Source\Test">
        <arguments>
            <argument name="test" xsi:type="string">foo</argument>
        </arguments>
    </virtualType>

    <type name="Company\Extension\Controller\Test\Test">
        <arguments>
            <argument name="context" xsi:type="object">Magento\Framework\App\Action\Context</argument>
            <argument name="test" xsi:type="object">VirtualTypeName</argument>
        </arguments>
    </type>
</config>

The class in which I'm injecting the virtual type:

class Test extends \Magento\Framework\App\Action\Action
{
    protected $test;

    public function __construct(
        Context $context,
        $test
    )
    {
        $this->test = $test;
        parent::__construct($context);
    }

    public function execute()
    {
        ini_set('xdebug.var_display_max_depth', 5);
        ini_set('xdebug.var_display_max_children', 256);
        ini_set('xdebug.var_display_max_data', 1024);

        var_dump($this->test);
        exit;
    }
}

The result of the var_dump:

array (size=1)
  'instance' => string 'VirtualTypeName' (length=15)