Reproduction details:
- Open workspace from file
workspace.code-workspace - Open
Package A/index.ts - Allow typescript workspace version
- TypeScript should work
- Ctrl(Cmd) + Shift + P -
>Typescript: Select TypeScript Version... - VSCode suggests
../.yarn/sdks/typescript/lib(Notice the one parent..instead of two) - Select that option
- VSCode will now not recognize the tsdk
If we manually change the workspace settings back to "typescript.tsdk": "../../.yarn/sdks/typescript/lib", and reload the window, the tsdk will work normally again