test1/.vscode/settings.json

// Place your settings in this file to overwrite default and user settings.
{
    "files.exclude": {
        "out": false, // set this to true to hide the "out" folder with the compiled JS files
        "node_modules": true
    },
    "search.exclude": {
        "out": true, // set this to false to include "out" folder in search results
        "node_modules": true,
        "typings": true
    },
    "typescript.tsdk": "./node_modules/typescript/lib" // we want to use the TS server from our node_modules folder to control its version
}