.cfnlintrc.yaml configuration is not considering for linting

To ignore few rules I have added the .cfnlintrc.yaml in the folder.

.cfnlintrc.yaml
File contents as below.

ignore_checks:
- E7003

But the extension is not automatically considering the configuration for linting. Is there any issue with the configuration file?
or the .cfnlintrc.yaml is not supported with vs-code extension?

Reproduce the issue in the VS Code extension with a .cfnlintrc.yaml containing ignore_checks for E7003. Start by tracing how the extension invokes linting and loads configuration; done means the configuration is recognized and E7003 is ignored when linting the file.

Written by the indexing model from the issue text.