jsconfig.json

{
  "compilerOptions": {
    // this is implicitly set in a `jsconfig.json` so we have to do it manually here
    "allowJs": true,
    "checkJs": true,
    "noEmit": true,
    "outDir": "dist", // this essentially disables the compilation errors by telling vs code where files would be put if it were to compile (which it won't because this isn't a real typescript project)
    "module": "commonjs",
    "target": "es6",
    "jsx": "react-jsx",
    // Do these as normal to your liking for your project
    "baseUrl": "src",
    "moduleResolution": "node",
    // "lib": [
    //   "ES2017.Object",
    //   "DOM",
    //   "DOM.Iterable",
    // ]
    "resolveJsonModule": true,
    "paths": {
      "@/*": [
        "./*"
      ]
    }
  },
  // only treat files in here as js source (thus ignoring `node_modules` and your fake output directory above)
  "include": [
    "src"
    // "src/**/*",
  ]
}