Cannot find module 'vue' in fresh Vue project with Typescript/ESLint

[RGamberini]

When creating a Vue / Typescript / ESLint project with create-vue it will have a Cannot find module 'vue'. Did you mean to set the 'moduleResolution' option to 'node', or to add aliases to the 'paths' option?ts(2792) in it by default.

Steps to Reproduce

1. Start a create-vue project with the following settings:

$ npm create vue@latest

Vue.js - The Progressive JavaScript Framework

√ Project name: ... create-vue-test
√ Add TypeScript? ... Yes
√ Add JSX Support? ... No
√ Add Vue Router for Single Page Application development? ... No
√ Add Pinia for state management? ... No
√ Add Vitest for Unit Testing? ... No
√ Add an End-to-End Testing Solution? » No
√ Add ESLint for code quality? ... Yes
√ Add Prettier for code formatting? ... Yes

2. Follow the installation steps.
3. Following the readme.md enable Volar's takeover mode

Expected Behavior

An error free project.

Current Behavior

There will be an error in VS Code in the main.ts file.

Context (Environment)

Windows 10 19045

$ node --version
v18.13.0
$ npm --version
9.3.1

Possible Solution

Under these conditions compilerOptions.moduleResolution in tsconfig.app.json should be set to node by default.

[haoqunjiang]

Can't reproduce. Would you please check your TypeScript version, VS Code's built-in TypeScript version (or VS Code version), and your Volar version?

Because, according to the error message, you might be using an outdated TypeScript version.
The error message has been changed (from node to nodenext) since TypeScript 5.0 beta: microsoft/TypeScript@e0bfac5#diff-fdf3f532dc2d3188ad1c05c8c9e064d0aa4143b8ba09b8f3313a0243f0a43effL3394

The most likely reason is an outdated VS Code version, because create-vue currently creates projects with TypeScript ~5.1.6, and Volar uses the built-in TypeScript version by default.
A workaround without updating VS Code is to choose the workspace version in the command palette:

[RGamberini]

@sodatea You were right! Somehow my VS Code version was badly out of date, running "Update Code" from the command palette and restarting VS Code seems to have fixed the bug.

Sorry for taking up your time, this is resolved!