https://github.com/Microsoft/TypeScript/wiki/Compiler-Options
says --target can take the value ES5 (uppercase).
Visual Studio Code warns about using the uppercase one in your tsconfig.json, presumably because it's following the schema.
The JSON schema for tsconfig.json also has it in lowercase, but the docs (https://github.com/Microsoft/TypeScript/wiki/tsconfig.json#details) refer you to the first page (which uses uppercase) for the values.
My guess at fixing the problem:
From the source it appears the value ought to be lowercase:
https://github.com/Microsoft/TypeScript/blob/master/src/compiler/commandLineParser.ts#L221
I think the fix is to use lowercase in the docs (the first page).