How to use phpcs.xml.dist configuration file

I've setup PHP_CodeSniffer (phpcs) using the settings outlined in the [wiki](https://github.com/iamcco/diagnostic-languageserver/wiki/Linters#php_codesniffer). I've also created a [phpcs.xml.dist](https://github.com/squizlabs/PHP_CodeSniffer/blob/master/phpcs.xml.dist) configuration file, however it does not seem to be picking up the rule exclusions I have setup in the xml file.

Is there additional configuration necessary to pick up that config file?

Here are my settings...

https://gist.github.com/caschbre/22971e36fbcdc17d089fc424b491b598

Start with the PHP_CodeSniffer setup in the linked wiki and the phpcs.xml.dist example, then compare them with the settings in the linked gist. Reproduce the configuration behavior and identify whether the rule exclusions are being recognized; done means the required configuration or limitation is documented for this integration.

Written by the indexing model from the issue text.