test1/.vscode/settings.json

{
    "files.exclude": {
        "node_modules": true,
        "out": true
    },
    "search.exclude": {
        "node_modules": true,
        "out": true
    },
    "typescript.tsdk": "./node_modules/typescript/lib" // we want to use the TS server from our node_modules folder to control its version
}