<!-- Please search existing issues to avoid creating duplicates. --> <!-- Also please test using the latest insiders build to make sure your issue has not already been fixed: https://code.visualstudio.com/insiders/ --> <!-- Use Help > Report Issue to prefill these. --> - VSCode Version: 1.40.1 - OS Version: Fedora 31 - Linux 5.3.11 Steps to Reproduce: 1. Create a new project that looks like this: ``` examples/ foo/ node_modules @types/ jest/ test/ bar.test.ts jest.config.js tsconfig.json # this is extending the parent one tsconfig package.json node_modules/ tsconfig.json package.json ``` 2. Open the project in vscode 3. vscode will show errors like this:  in `bar.test.ts` but if I `cd` into the **foo** example and I run the tests `npm test` I will not have any typescript error also if I remove `extends` from the `tsconfig.json` the error will disappear Is also possible to reproduce this issue by using this project: https://github.com/aerogear/graphql-testx <!-- Launch with `code --disable-extensions` to check. --> Does this issue occur when all extensions are disabled?: Yes